Agglomeration and Dispersion in China and ASEAN: a Geographical Simulation Analysis

Spatial designing of economic development with enhancing connectivity has become essential to pursue both sustained growth and the narrowing of development gaps. The issue of agglomeration and dispersion in China and its neighboring countries is an example of requiring such an approach. This paper introduces the Geographical Simulation Model (GSM) based on the new economic geography setting and presents illustrative simulations on Asian Highway No. 3 and Kyaukpyu deep sea port development in order to analyze the economic implication of developing hard and soft infrastructure as well as lowering national border barriers for inclusive growth at the sub-national level.