The growth of city systems with high-speed railway systems

This paper proposes a dynamic multi-regional growth model with free mobility of capital and population. The economic system consists of multiple cities interconnected by high-speed railway systems with each city consisting of one production sector as well as residential land use. The railway systems provide production sectors of different cities with the opportunity of face-to-face communication for knowledge production. The model describes the dynamic interdependence between capital and knowledge accumulation, wage and land rent structures, urban patterns with endogenous city size and inter-city interactability. It is emphasized how differences in geographic and qualitative factors of high-speed railway systems may affect regional economic development. The model simulates the dynamic processes of economic development of city systems.