ECONOMIC MECHANISM FOR URBAN SPATIAL EXPANSION

Abstract

Enormoussuccess in Chinese economy results in rapid urban development. Urban growth, which ismanifested in both population aswellasbuilt- up areas,contributes increasing urban problems such astraffic congestion,environmentpollution and hous- ing crowdedness. Thereis increasing voice thatadvo- catesdiffusion ofurbanpopulation and economicfunc- tions from central city into outskirts in order to miti- gatethese urban problems. Thispaper,based on urban theory,argues thaturban spatialexpansion isinevitable if market forces are allowed to allocate resources in orderto achieveeconomic efficiency. It is also recog- nized that urban spatially continuous expansion can be arranged in ways in which these negative aspects can beminimized and positiveaspectscan bepreserved.