Master Course Term Paper

Title：Analysis on the Development of International

Engineering Contracting Cooperation between
Indonesia and China

Department： Economic Department t

Major ： International Trade e
Course ： International Business e
Student ID： I202221122 e
Name ： TRENADI ADHITIA 纳迪 e
Teacher ： Prof. Xiaoping Xu e
 October 2022

Analysis on the Development of International Engineering Contracting

Cooperation between Indonesia and China
Abstract

As an important form of international business, international engineering contracting has

been paid more and more attention by countries, especially developing countries. The Republic

of Indonesia is the largest economy in Southeast Asia. However, the backward infrastructure

seriously restricts the economic development of Indonesia. In order to promote the development

of the domestic economy, the Indonesian government will vigorously develop infrastructure

construction as a revitalization. An important economic means. Since the formal establishment of

China-ASEAN Free Trade Area in November 2002, the engineering contracting business

between Indonesia and China, the world's second largest economy, has gradually increased,

which has promoted the economic development of Indonesia to a certain extent. There are also

some serious problems in this process. Therefore, this term paper will study the international

engineering contracting conducted by Chinese enterprises in Indonesia.

The research of this term paper will be based on the relevant theories of international direct

investment, and use scientific methods such as normative analysis, case analysis, qualitative and

quantitative analysis to integrate and use the collected relevant literature, so that the data and

other information can be standardized. Through research, this paper puts forward

countermeasures and suggestions to promote the development of Chinese enterprises in

Indonesia's international engineering contracting. From the perspective of national government,

it is necessary to strengthen coordination and communication between governments, improve

policies and regulations related to engineering contracting, increase financial support, and put

efforts should to strengthen the technical standards for international engineering contracting.
Key words: international engineering contracting; chinese enterprises; investment; infrastructure
 Table of Content
Chapter 1 Background Introduction............................................................................................................3

Chapter II Literature Review.......................................................................................................................5

2.1 Indonesia's International Engineering Contracting Market Analysis and Industry Competition
Situation..................................................................................................................................................5

2.2 Chinese-funded Enterprises Project Contracting in Indonesia Situation.......................................6

Chapter III Problems analysis of Chinese-funded enterprises in the development of international

Engineering contracting in Indonesia..........................................................................................................8

3.1 Problems existing in Indonesia.....................................................................................................8

3.1.1 The infrastructure construction is lagging behind and the potential for sustainable
development is insufficient..................................................................................................................8

3.1.2 Geopolitics and political instability.......................................................................................8

3.1.3 Too strict labor input.............................................................................................................9

3.2 Problems existing in Chinese enterprises in Indonesia...............................................................10

3.2.1 Small business scope and scale...........................................................................................10

3.2.2 Engineering contracting projects have few industries, high technical requirements and
single model......................................................................................................................................11

3.2.3 Lack of compound management talents..............................................................................12

3.2.4 The localization level of Chinese enterprises in the process of project implementation is not
high 12

Chapter IV Problem Countermeasures......................................................................................................14

4.1 Improve the degree of localization and strengthen the company's operating characteristics.......14

4.2 Improve project performance capability and improve self-management level............................14

4.3 People-oriented, cultivating professional comprehensive management talents...........................15

4.4 Improve the company's awareness of risk prevention and improve the internal control
management mechanism........................................................................................................................15

Chapter V conclusion................................................................................................................................16

References.................................................................................................................................................18
 Chapter 1 Background Introduction

Economic globalization has become an inevitable trend in the development of the times. The

inevitable path of future economic development will to a large extent determine the lives of

people in the world and the economic trends of various countries, and it will also increase the

cooperation between countries. At present, all countries in the world are turning to the

international engineering contracting market. This is especially obvious in developing countries,

because international project contracting is an important way to realize the integration of

developing countries with international standards and improve the domestic economic level.
The Republic of Indonesia is the fourth most populous country in the world, the country

with the largest economic aggregate in Southeast Asia, the largest economy in ASEAN, and an

oil exporter, it is a large country with a population of 250 million. However, due to the relatively

backward infrastructure construction, Indonesia's economic development has been stagnant for a

long time. In order to promote economic recovery, strengthening infrastructure construction is

the fastest and best choice for the benefit of the country and the people. Indonesia has an

increasingly close cooperation relationship with China, the world's second largest economy.

After the ASEAN Free Trade Area (November 2002). In 2005, Indonesia and China signed a

joint declaration of strategic partnership. Since then, Chinese-funded enterprises have entered the

Indonesian engineering contracting market and expanded year by year. In recent years, due to the

continuous development of Indonesia's economy, the relationship between the two countries has

become increasingly close, coupled with the continuous improvement of the capabilities of

Chinese-funded enterprises, the cooperative relationship between the two countries will become

more stable and strengthened. In 2013, Chinese leader Xi Jinping put forward the strategic

concept of building the "Belt and Road". Since then, China's neighboring countries along the

route have been highly valued, mutual exchanges have become more frequent, and overseas

infrastructure projects have become more prosperous. In a promising market like Indonesia, this

is undoubtedly the focus of engineering contracting companies.

 This paper analyzes the development and market conditions of Chinese enterprises in

Indonesia's international engineering contracting market. This not only has a certain driving

effect on the domestic development of Indonesia, but also has certain reference significance for

improving the project management level of China and Chinese enterprises. This will promote the

sustainable and healthy development of economic and trade cooperation between the two

countries, and enhance the international service level and international influence of the two

countries. Therefore, it is of great significance to study the development of international

engineering contracting of Chinese-funded enterprises in Indonesia.

 Chapter II Literature Review

2.1 Indonesia's International Engineering Contracting Market Analysis and

Industry Competition Situation

Before 1997, Indonesia's economy grew rapidly, which had a great positive impact on the

engineering contracting market. For some time now, the growth rate of the engineering

contracting market has outpaced the growth rate of Indonesia's GDP. After the Asian financial

crisis in 1997, market output hit a low record, down 36.4% in one year. After that, market growth

has been stagnant for a long time. Since 2002, the international engineering contracting industry

has developed vigorously and heated up rapidly. In the three years from 2003 to 2006, the output

value doubled, from $12.52 billion to $27.18 billion, with an average annual increase of 29.5%.

7%. In 2006, the market share was 9% of GDP that year, second only to China and India (Zhang

Tiangui, 2011).
In the next few years, Indonesia's engineering contracting will continue to develop rapidly

with huge potential. In the next few years, the engineering contracting industry will be more

favored by the Indonesian government. In the next decade, the investment will be even greater

(Li Xin, 2015). In addition to financial support, policy and legal support will also be increased.

At present, the relevant meeting of the Indonesian government clearly pointed out that in the

future, it will open channels to attract international enterprises and capital to invest in Indonesia's

telecommunications, petroleum, chemical, textile and other industries, strengthen the

improvement of basic economic capabilities, develop major industries in Indonesia, and drive the

development of other industries. In addition, Indonesia's future project contracting will take the

form of public-private partnership or private financing (Fernandez, 2020).

The government will adjust tax rates, bank interest rates and investment policies

accordingly, and increase resources such as power supply and equipment production to

vigorously promote the development of the project contracting market. In 2016, the Indonesian

government proposed ten major industries to invest heavily in the next few years, and gave clear
preferential policies and two major production plans to improve the quantity and quality of

housing (Liu Dongjun, 2012). All of the above show that Indonesia has many opportunities for

contracting development projects in the future.

Engineering companies in Indonesia mainly include three local companies: PT Wijaya Karya

(WIKA), PT Total Bangun Persada and PT Adhi Karya, and an Australian company, John

Holland Group. WIKA is mainly engaged in construction, electricity and transportation

infrastructure. Its subsidiaries PT Wijaya Karya Beton, PT Wijaya Karya Realty and PT Wijaya

Karya Intrade focus on construction, real estate and industrial trading respectively. PT Total

Bangun Persada is the largest local construction contractor in Indonesia and its business scope

covers many construction and real estate projects. PT Adhi Karya is involved in a wide range of

fields including construction, consultancy services, industrial engineering, information

technology and real estate. Its subsidiary PT Adhimitra Jasa Indah is mainly engaged in the sale

of buildings and also involves related consulting services; PT Adhi Realty's business is

concentrated in the real estate industry (Wang Zhengli, 2012).

2.2 Chinese-funded Enterprises Project Contracting in Indonesia Situation

In today's global economic integration and economic development, China, as the world's

second largest economy, actively promotes the "going out" strategy, which to a certain extent

promotes the rapid development of Indonesia's international engineering contracting industry

(Liu Jianquan, 2009).

China's foreign project contracting business started in the Asian and African markets, and

has now spread to more than 180 countries and regions on five continents. In 2015, the Asian

market was the largest market for China's foreign project contracting, accounting for 45.53% of

the total turnover, followed by the African market, accounting for 37.20%. As the largest

economy in Southeast Asia, Indonesia has taken it as China's development goal of course. The

value of engineering contracting in Indonesia exceeds US$10 billion annually (Zhang Sui, 2009).

Since China and India resumed diplomatic relations in the 1990s, Chinese companies have

appeared in the Indonesian contracting market. In June 2015, the Indonesian Chinese Chamber

of Commerce, the first Chinese enterprise service center above the Chinese Enterprise Service
Center, announced its establishment at the 10th anniversary celebration of the "Indonesia

Chinese Chamber of Commerce", aiming to build a reliable Chinese enterprise consulting

service platform. Since then, the number of large-scale Chinese-funded enterprises registered

with the Indonesian Chinese Chamber of Commerce has gradually increased. At present, it has

increased to 160 member units, 2 branch associations, and 1 Chinese enterprise service center,

covering multiple service areas. Those large engineering companies that are well-known and

powerful in China basically set up branches or offices in different cities in Indonesia. In the four

years from 2010 to 2014, Chinese investment in the Indonesian market reached 495 million US

dollars, as high as 628 million US dollars in 2015, a year-on-year increase of 26%. In the first

half of 2016, the investment amounted to 1 billion US dollars, a year-on-year increase of 533%,

an astonishing growth rate (Guan Yue, 2015).

In addition to the steady growth of bilateral trade in recent years, cooperation in other fields

is also gradually increasing, especially in the field of infrastructure construction. In 2015, China

and Indonesia signed 79 new engineering contracts with a total value of US$7.3 billion. Among

them, power station engineering accounts for 52%, traffic engineering accounts for 15%, and

communication engineering accounts for 10% (Liu Zhixiong, 2012). The three account for 77%

of the total contract value, as figure 3-1 shows:

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25

20

15

10

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tio io tio sta en in ica rg da
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Figure 3-1 Summary of the number of newly signed contract projects between China and Indonesia in

2015
 Chapter III Problems analysis of Chinese-funded enterprises in the

development of international Engineering contracting in Indonesia

3.1 Problems existing in Indonesia

3.1.1 The infrastructure construction is lagging behind and the potential for sustainable

development is insufficient

Since the late 1990s, Indonesia's investment in the infrastructure market has continued to

decline. The main reason is that the global financial crisis that broke out in 2009 had a huge

impact on Indonesia's fiscal revenue and expenditure, resulting in a reduction in the investment

budget for infrastructure construction and overall infrastructure construction. Failure to keep up

will further affect the development of the domestic economy. Although the Indonesian

government has recognized the importance of development bases in recent years and proposed

an overall pattern of six "economic corridors", including infrastructure construction of 200

billion US dollars in electricity, transportation, and energy, the current infrastructure construction

is still lagging behind.

3.1.2 Geopolitics and political instability

Indonesia is known as the "land of a thousand islands" and is truly the largest archipelago

country in the world. There are approximately 17,508 islands across the entire border. It is

completely surrounded by the ocean and relatively scattered geographically. It is a ribbon, from

east to west. The straight-line distance is more than 5,000 kilometers, and there are five main

islands on the mainland (Java, Kalimantan, Sulawesi, Sumatra, Papua). Except for the relatively

narrow sea between Sumatra and Java in the east, the rest of the islands are scattered in the

ocean. The distances between them are relatively long, hundreds of kilometers, and the closest

difference is Papua and Sulawesi. The distance between the two is more than 1,000 kilometers,
as shown in Figure 6. Due to the long distance from the ocean, the mutual communication and

exchanges between the islands are hindered, and the various economic and trade sectors are

separated from each other and the economy is dispersed. In the era when enterprises are based on

reducing operating costs and increasing net income, modern industries generally show a trend of

concentration. However, Indonesia's topography is doomed to a large-scale industrial chain that

cannot be formed. The only core island on the plain is Java. With an area of only 130,000 square

kilometers, it is not easy to modernize Indonesia with a population of 250 million. In addition,

Indonesia is located in a subtropical rainforest climate, and it is rainy all year round, which limits

the pace of development of modern industrial manufacturing in Indonesia to a large extent.

Figure 4-1 The geographical distribution of Indonesia

The disadvantages of geographical dispersion, reflected in politics, can lead to divisive

tendencies. In fact, back in the 1850s, before the Indonesians gained independence from Dutch

colonial rule, it was not a complete country. Due to the rapid development of the national

industry, exchanges between the Indonesian land sectors have increased and resources have been

integrated, but relatively limited efforts to integrate. While geographically dispersed sectors can

be integrated into a country, they want to eliminate interregional sectors. Objectively existing

obstacles are difficult to achieve, which invisibly increases political internal friction and reduces

the efficiency of political internal friction. If domestic political turmoil is accompanied by the

involvement of foreign powers, civil conflict may worsen and the country may be divided. The

same is reflected in the military, which means that when a country faces an external threat, it
cannot concentrate its forces and can be easily defeated by the other side.

3.1.3 Too strict labor input

In recent years, my country's economy has developed rapidly. During the demographic

dividend period, China has undertaken many international infrastructure construction projects,

exported a large amount of labor to poor countries with insufficient capacity, and cultivated a

large number of comprehensive talents with international construction experience, making great

contributions to rapid construction. However, due to the policy restrictions of the host country,

physical incompatibility and language barriers caused by the natural climate environment, or

subjective constraints such as running away from home for a long time, unable to take care of the

family, and unable to quickly integrate into the local life, it is difficult for Chinese exports to

make workers stay for a long time. Work locally. It can be seen that restricting the import of

labor services is a relatively unfavorable factor for Chinese-funded enterprises to carry out

construction projects in Indonesia.

3.2 Problems existing in Chinese enterprises in Indonesia

3.2.1 Small business scope and scale

Since the beginning of this year, due to the vigorous development of the international

engineering contracting market, the contracting companies in the international market have

higher and higher requirements for the contracting companies, and the contracting companies are

required not only to be able to carry out comprehensive engineering survey, construction, design,

power supply, water supply, and equipment procurement. Supply, personnel training and other

aspects of the work, this increase in requirements makes many small enterprises gradually

eliminated in the competition. The Chinese government has seen this market trend. In order to

continue to occupy a place in international engineering contracting, the Chinese government

vigorously advocated the establishment of large domestic engineering contracting companies,

which led to the reorganization of more and more small engineering companies with a single

structure, forming large engineering contracting enterprises, and going abroad to carry out
business contracting business.
Due to the lack of international engineering experience and unclear strategic positioning of

these originally small companies, various problems have arisen in the actual project operation.

Under the new corporate structure, we will re-integrate resources and leverage joint advantages.

In fact, most of the small companies before the reorganization are constrained by their own funds

and talents, which will inevitably lead to low engineering efficiency and low efficiency, and it is

difficult to rapidly improve the level of operation and management.

3.2.2 Engineering contracting projects have few industries, high technical requirements and

single model

The industry of the international engineering contracting market is very broad, divided into

more than a dozen major categories. The Indonesian engineering contracting market in which

Chinese enterprises participate are mainly concentrated in the fields of electric power, water

conservancy, infrastructure and industry. In these industries, the engineering volume is small and

the technical content is low, and there are few contracted projects in industries with high

technical content such as petroleum, chemical industry, and electronic communication. However,

with the continuous development of Indonesia's international engineering contracting market, the

competition of Chinese enterprises in the engineering contracting market is increasingly reflected

in the competition of general technologies. In some high-end technologies, the technologies of

the United States and Japan are temporarily difficult to surpass. There aren't many advantages,

which makes some high-end projects lose their edge. For example, on the one hand, the

dominant technology fields of Chinese enterprises are mainly construction, power generation,

coal, etc. However, with the development of the market, enterprises from other countries are

gradually catching up, and the competition is becoming increasingly fierce; on the other hand, in

the field of power generation, the Indonesian government has According to the terrain

characteristics of Indonesia, the traditional power station construction mode was changed, and a

new technology scheme of distributed power station gas turbine was proposed. For Chinese

companies, it can be described as "over-hearted but lacking in energy". They could only watch

helplessly as the project was sent to the European and American levels. Technical cooperation
enterprises, such as geothermal power plant projects, etc. Most of the contracting methods for

China to carry out engineering contracting projects in Indonesia are EPC general contracting and

EP design and supply projects. At present, the application of BOT, BOOT, PPP, DBO and other

models widely used in the international market is still relatively small, which shows that the

mode of Chinese enterprises contracting international engineering projects in Indonesia is

relatively simple, which is not conducive to risk diversification. Try a variety of contracting

methods to increase the success rate.

3.2.3 Lack of compound management talents

The international engineering contracting business needs comprehensive talents in many

aspects, including experts and senior technical talents with bidding and quotation ability,

business negotiation ability, and economic financing talents after the project is signed. The

project implementation process requires business, technical and communication skills. General

management talents. At present, only some enterprises in my country have high-quality talents,

mainly those large state-owned enterprises controlled by the state and enterprises that entered the

international engineering contracting market earlier and accumulated outstanding talents through

years of engineering experience. Most other ordinary enterprises still lack excellent management

talents. In addition, due to long-term work overseas, far from home and relatives, talents with

experience in international engineering projects are prone to drain. Many multi-level experienced

talents choose to give up international projects or even leave the industry due to reasons such as

being unable to take care of their families in time, resulting in brain drain. The particularity of

international engineering projects, such as high risk, long time, etc., highlights the lack of talents

with complex management capabilities.

3.2.4 The localization level of Chinese enterprises in the process of project implementation is

not high

Most Chinese enterprises pay attention to the actual work of engineering contracting

projects, but do not pay enough attention to business processes. The main manifestations are the

lack of business communication skills of managers, low foreign language proficiency, and lack
of coordination and communication skills with owners and regulatory agencies. In addition, the

lack of a comprehensive understanding of Indonesia's local market awareness, building materials

supply capacity, and material prices will cause the incompatibility of the engineering contracting

company, which will have a certain negative impact on the smooth development of the project.

The main reason is Chinese-funded enterprises. Due to the low degree of localization. For

example, in the contracted projects of Chinese companies in Indonesia, local workers are mainly

coolies and technicians, and some local personnel are involved in business negotiations and

project management. The apparent reason is that the management of Chinese companies lacks

trust in local Indonesian personnel. The root cause of my lack of self-confidence is the imperfect

international project management system of Chinese companies. Compared with mature

engineering contracting companies in Europe and the United States, Chinese companies have a

relatively low degree of localization and lack of investment in senior management personnel. In

some projects, only one or two senior backbone personnel are arranged from the company, and

the rest of the labor force employs local personnel. This affects the performance of engineering

construction, resulting in a partial disconnect between management and actual work.

 Chapter IV Problem Countermeasures

4.1 Improve the degree of localization and strengthen the company's

operating characteristics

Improving the degree of localization is not only reflected in the continuous increase in the

number of local Indonesian employees, but also the integration of corporate management

concepts with Chinese characteristics with the local cultural background and lifestyle of

Indonesia, as well as the business culture and market characteristics of Indonesia, comprehensive

consideration. The optimized combination of resources is transformed into its own

competitiveness. China Enterprise's project contracting agency in Indonesia actively integrates

into the local social customs, strives to become a legal and respected "social citizen" by the

locals, abides by the rules, enthusiastic about social welfare undertakings, and strives to become

a "model" for local Chinese enterprises.

4.2 Improve project performance capability and improve self-management

level

Engineering contracting projects are the most important carrier for construction companies to

expand their markets, and are also an important foundation for the construction industry. In order

to achieve the strategic development of foreign engineering contracting, the main approach must

be to improve the ability to perform projects. Therefore, in order to improve the company's

project management level, it is necessary to improve the project performance capability through

refined project management. First, to use the system to manage projects, it is necessary to

establish and improve a standardized project management system and operation mechanism at

the company level; second, strengthen contract and legal management, protect the legal rights

and interests of the enterprise itself, avoid improper losses, and externally. , pay attention to the

local customs, culture and laws of Indonesia, so that the project follows the local laws and

regulations, and avoid engineering disputes; third, shape the process quality, refine and optimize

the project construction process, strengthen process management, and use advanced and
scientific methods. The management method controls the construction process. On the basis of

ensuring the quality and safe operation of the project, it strives to ensure the smooth management

and the lowest cost. Finally, on the basis of clear project responsibilities, a scientific and

reasonable incentive mechanism will be established according to market principles.

4.3 People-oriented, cultivating professional comprehensive management

talents

Talent is the first element of any organization's operation. China Enterprises can implements

the "people-oriented" talent theory, and reflects "retaining people with treatment, career, and

emotion" in terms of policies and industry behaviors, and builds a group of international talent

teams that are loyal to the company and love their careers. By establishing a scientific and

reasonable professional remuneration system, adopting target responsibility management, China

Enterprises has increased employee incentives and encouraged employees to actively participate

in the international engineering contracting business. At the same time, the company has

established a human resources training system, and provided funds and set up a special system to

ensure that it has a directional selection and training of a group of elite talent teams who

understand technology, business, and management.

4.4 Improve the company's awareness of risk prevention and improve the
internal control management mechanism

China Enterprises has adopted a comprehensive risk management method internally,

formulated corresponding specific implementation plans, and improved the risk prevention

awareness of all employees to improve the company's internal control level. It clarifies the main

body of business risk management responsibility in the Indonesian international engineering

contracting market, establishes a risk assessment and early warning mechanism, and puts

forward countermeasures in a timely manner in the face of foreseeable risks to avoid losses. In

the early stage of project bidding, focus on project bidding review, resolutely abandon projects

with too strict contracts, increase risk monitoring in the process of project implementation,

especially focus on monitoring the price risk of materials, equipment and materials, and

strengthen project management. , so as to improve the use efficiency.

 Chapter V conclusion

The economic and trade exchanges between Indonesia and China have a long history.

Geographical proximity and frequent cultural exchanges have laid a solid foundation for

Chinese-funded enterprises to carry out project contracting in Indonesia. This paper argues that

Chinese-funded enterprises should continue to increase their efforts in international project

contracting in Indonesia. From an internal point of view, Indonesia's economy has developed

rapidly in recent years, especially the international engineering contracting business in the

infrastructure construction market has grown rapidly and has huge potential. The establishment

of the China-India strategic partnership has created more opportunities for Chinese-funded

enterprises to enter the Indonesian market. Provide favorable conditions for the development of

engineering contracting projects. From the outside, Chinese-funded enterprises have more

experience in international project contracting, and their own capabilities can play a comparative

advantage in projects in specific industries.

In the future development, the two governments should strengthen coordination and

exchanges, improve the two countries' policies, laws and regulations in the international

contracting market, increase financial support for contracting companies, and promote

engineering contracting technical standards. Provide policy support for both parties to carry out

international project contracting. The enterprise itself has also intensified its reform and

reorganization, actively used foreign capital to enhance its financial strength, realized business

diversification, expanded its business scope, further strengthened its management of costs,

contracts and information, and cultivated an international high-end talent team. Actively

cooperate with local reliable groups in Indonesia to improve the localization level of enterprises

and create convenience for the further expansion of Chinese-funded enterprises in Indonesia's

international engineering contracting market. Under the background of the international project
contracting market launched by countries all over the world, the Chinese-funded enterprises

involved in this article carry out international project contracting in Indonesia, which has certain

reference significance for Indonesia to welcome Chinese foreign investment. Hope it can be

helpful to Indonesian project owners and related departments. Avoid detours and achieve the

effect of promoting the signing of contracts with Chinese-funded enterprises and the smooth

implementation of projects.
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krugman 在上面讲过了为了成功的获得综合经济或者一体化的经济，他说有一些限制，在
收益递增和不完全竞争的条件下，存在一些涉及贸易的重要问题，这些问题涉及了市场
细分。

Burenstam Linder 的 1961 年《贸易与转型论文》，在这篇文章 linder 他认为国家倾向于

出口具有大量国内需求的商品，而不是传统的基于供应的比较优势。 这个林德的文章被
许多观察者来说似乎在直觉上是合理的，并且产生了大量但不确定的实证文献。 而且，
该假设的分析基础仍不清楚。
没有利润的公司数量
现在考虑一家在国外开始生产的公司。因为它将具有与现有公司相同的边际成本，并面
临相同的需求弹性。这意味着它的销售额将是

由于规模经济，每种商品仅在一个国家生产，并在两个国家出售给消费者。 但是，如果
生产成本相同，那么选址的决定因素是运输成本； 如果在市场较大的国家进行生产，则 ，
总运输成本较低。另外，如果运输成本高（对应于低 γ）或者如果两国规模接近，则，将
不再发生收益递增行业完全集中在大国的情况。 然而，它也表明，较大的国家仍将是该
行业的净出口国。 简单的来说呢，经济规模较大的国家往往是垄断竞争部门的净出口国 。
特别是，如果 L/L* 足够大，所有 X 商品的生产将集中在本国里面。国内市场效应也是
一体化经济无法实现的原因之一

新经济地理
Krugman 首先认为在过去的一些研究呢，出现了将国际贸易理论中的概念，应用于分析
国家内人口和工业的位置。 或者是应用了劳动力流动的经济单位去分析。 但是实际上，
国际贸易理论学家几乎完全没有参考区位理论家和区域科学家的想法。
只要贸易理论被收益不变的传统所主导，这些领域就几乎没有什么可说的。 另外，贸易
理论家花了这么长时间才将新贸易理论的工具应用于经济地理学。

Fujita 城市经济理论
使用生产非贸易中间产品的垄断竞争部门的假设为集聚经济（agglomeration economy）提
供了微观基础，而集聚经济是任何城市形成理论的必要组成部分。
在他的垄断竞争模型中，他将重点放在作为集聚经济起源的各种本地生产性服务的可用
性上。同时，他可能会发展出一种消费者集聚的垄断竞争模式，该模式侧重于当地的消
费者服务，如餐馆、剧院、美容店等各种个人服务。
可以假设个拥有商品交易产业和（本地消费者）服务业的城市。服务业为消费者提供多
种差异化服务，然后它就属于垄断竞争的市场了。在消费者对产品种类的偏好存在的情
况下，人口的增加将增加城市中可用的消费服务数量，从而提高家庭效用。这反过来会
降低城市的实际工资，使贸易商品行业能够雇佣更多的工人。这样，消费者对产品种类
的偏好将产生城市群的基本主动力。
krugman 这些模型基本上利用了上述中间产品讨论中提出的相同观点：市场规模对垄断竞
争的中间产品部门的影响与纯粹的外部经济具有基本相同的影响。

Pred, A. (1966)，美国城市工业增长的空间动态
pred 强调区域增长的累积过程是基于前向和后向的联系。 它设想了一个具有两个对称区
域（东部和西部）、两个部门（农业和制造业）以及两个生产要素（工人和农民）的经
济体。 制造业是 Dixit-Stiglitz 的一个部门，在地区之间运送制成品的运输成本冰山一角

我们现在假设工人（但不是农民）在地区之间流动，并且将转移到任何为他们提供更高
实际工资的地区。
关键问题是均衡是否将涉及在两个区域之间平均分配的工人，或者将涉及工人集中在一
个区域去。 然后发现这个问题可以用一种推动工人分散的“离心”和两种鼓励工人集中
在一个区域的“向心”之间的关系来表达。 离心力是假定农民的不动；
向心力，首先，第一，如果有个地区拥有更多的工人（生产要素），都会为制造业提供
更大的市场——因此国内市场效应将发生。 其次，在其他条件相同的情况下，如果工人
靠近制造业供应商，他们将获得更高的实际工资。
这两种向心力可以与 1970 年前关于发展经济学的讨论中发挥重要作用的“联系”相提并
论，国内市场效应代表后向联系，靠近供应商的愿望是前向联系。

Harris
有一个特别的“市场潜力函数”，这是一种通过与物理学类比而创建的方法。这个概念
最终来源于物理学，在物理学中，类似的公式被用于计算电磁场或引力场的强度。这表
明，一个地点生产的货物需求是其他地点购买力的总和，由运输成本加权。
市场潜力（P）被定义为一个点（M）可进入市场的总和（E）除以它们与该点（d）的距
离。

Von 地租理论
这一理论由 J. H. von Thünen 发展起来。 他的模型解释任何地点的租金等于其产品的价
值减去生产成本和运输成本。 承认所有活动的运输成本是恒定的，这将导致生产成本最
高的活动位于市场附近，而生产成本低的活动则远离市场。

Christaller “中心地理论”
是一种城市地理理论，旨在解释商业系统中的市场服务或住宅系统中的人类住区的数量、
规模和范围。它于 1933 年引入，用于解释城市在景观中的空间分布。 克里斯塔勒首先
分析了这一理论，他指出，定居点只是充当为周边地区提供经济服务的“中心场所”。
Christaller 解释说，为了提高效率，大量小型定居点将彼此相对靠近，因为人们不想为了
日常需要而远行。 但是人们会为了更昂贵和不经常购买的物品或专门的商品和服务而走
得更远，这些商品和服务将位于相距更远的较大定居点。

Venables (1993) 提出了一个模型，在该模型中，产品只能以成本进行交易的行业之间的纵

向联系在专业化力量和分散力量之间产生了张力。

Krugman 和 Livas（即将出版）提供了一个模型，其中贸易政策与集聚之间存在相互作用：
保护主义通过增加国内前向和后向联系的重要性，提高了国内集聚可持续发展的可能性。
Brainard , horstmann and markusen
最近提供了跨国公司的模型，其中公司决定走向跨国反映了与多个工厂相关的规模经济
损失与通过为每个市场进行本地生产可以实现的运输成本降低之间的权衡。 要素比例和
运输成本可能会鼓励公司在海外生产，公司可以在固定成本和可变成本之间进行权衡。

生产每个品种需要固定成本 Ft 来运营一个“总部”，以及第二个固定成本 F2 来运营每

个“工厂”； 每单位最终产出也有一个不变的边际成本 c。
虽然每个总部的服务可以免费运送到公司经营的任何工厂，但运送最终产品的成本很高。
具体来说，在国际运输的每一单位最终货物中，只有 γ 单位到达。

每家公司都面临两种策略之间的选择：只有一家工厂并将其品种出口到另一个国家或额
外的固定成本开设第二家工厂，并从当地生产供应每个市场。

那么，假设所有公司都从事本地生产（本土市场效应），企业将进入，直到利润被消除，
并且每个国家的总部数量相同，存在对称均衡；用 n 表示这个数字。然后，每家公司将
有以下销售额：

每个国家都有一半的销售额。每个人的营业盈余将与其总销售额成正比，并等于其固定
成本：

但该公司还将挽救固定成本，取消第二家工厂的 F2。因此，公司会发现关闭一家工厂是
最佳选择，除非：

，如果 F2/F1 很小，也就是说，如果开设额外工厂的固定成本不太大 - 或者换句话说，

如果规模经济主要在公司层面，
而不是个别工厂。 如果 y 小，也就是运输成本高，也会倾向于满足。

如果均衡确实采取多工厂经营的形式，那么两国的整合将采取以下形式：每个国家都有 n
个总部； 每个总部控制每个国家的一个工厂； 然后没有最终产品的贸易，但有总部服
务的隐性交换。 也就是说，均衡将涉及到类似国家之间的产业内直接外国投资，这实际
上是直接投资多的特征。

贸易和直接投资是互补还是替代？ 一方面，如果公司为了利用成本差异而走向跨国，那
么他们将倾向于创造国际贸易。 相反，我们预计在任何情况下倾向于增加国际贸易的因
素，例如运输成本的降低，将鼓励公司在地理上分离业务，从而创造了跨国公司。
另一方面，如果公司为了更好地进入当地市场而走向跨国，那么它们将取代传统的国际
贸易。贸易壁垒将促进这种以市场为导向的国际化经营。

DUNNING
这种范式假设如果在内部或内部完成相同行动的成本较低，机构将避免在公开市场上进
行交易。 它基于内化理论，于 1979 年由学者 John H. Dunning 首次阐述。