Study on Economics Integration of Wuhan City Circle: A Spatial Economic Framework

Spatial economic model has a unique and important status in field of city economics, and deserved more attention in explanation of effects by city integration because of its firm micro-foundation and precise prediction capacity. This paper constructs a spatial economic model to explain the effects brought by city integration, and takes Wuhan city circle as a demonstrated example to confirm those results. The spatial economic model shows that there is apparent investment transfer effect along with city integration and all members of city circle can get welfare benefit, but also the result shows welfare allocation is unequal to every member, which depends on their economic endowment and expenditure pattern.