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| Micro-mechanism and Dynamic Simulation of Spatial Agglomeration and Knowledge Spillover |
| XUE Ling, PENG Zhibin, ZHAO Wei
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| School of Government, Peking University, Beijing 100871, China |
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Abstract According to the study of “new” new economic geography, there are three “black boxes” in terms of the setting of firm productivity, the mechanism of knowledge spillover between firms, and the sources of the increase in agglomerated areas’ productivity. Based on the ideas and methods of Complexity and Agent-based Computational Economics, we use Genetic Algorithms to encode firms’ knowledge structure and develop an agent-based spatial economic evolution simulation platform to simulate the process of firms’ productivity improvement and spatial agglomeration through knowledge spillover and innovation. Simulation experiments demonstrate that the knowledge spillover leads to dynamic heterogeneity of firms, and the flow of firms between regions is progressive and bidirectional. Then, in the early stage of the spatial agglomeration process, the increase in regional productivity is due to the “pull-up effect” formed by the entry of high-efficiency firms and the combined effect of knowledge spillover, while in the later stage of the agglomeration process, the increase in regional productivity is mainly due to local knowledge spillover and the “pull-down effect” of the entry of low-efficiency firms.
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Received: 20 October 2021
Published: 19 April 2023
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