Table 1 Main parameter settings and meanings.
Parameter | Meaning | Range |
|---|---|---|
\(x\) | Probability of high-skilled firms choosing to enter the central city | \(x\in [0,1]\) |
\(1-x\) | Probability of high-skilled firms opting not to enter the central city | \(1-x\in [0,1]\) |
\(y\) | Probability of medium-skilled firms choosing to enter the central city | \(y\in [0,1]\) |
\(1-y\) | Probability of medium-skilled firms opting not to enter the central city | \(1-y\in [0,1]\) |
\(z\) | Probability of low-skilled firms choosing to enter the central city | \(z\in [0,1]\) |
\(1-z\) | Probability of low-skilled firms opting not to enter the central city | \(1-z\in [0,1]\) |
\({Q}_{\alpha }\) | Benefits that can be obtained by high-skilled firms from production | \({Q}_{\alpha } > 0\) |
\({Q}_{\beta }\) | Benefits that can be obtained by medium-skilled firms from production | \({Q}_{\beta } > 0\) |
\({Q}_{\gamma }\) | Benefits that can be obtained by low-skilled firms from production | \({Q}_{\gamma } > 0\) |
\(F\) | Location advantage gains for firms entering the central city | \(F > 0\) |
\(D\) | Geographical transportation costs | \({{Q}_{\alpha } > Q}_{\beta } > {Q}_{\gamma } > D\) |
\({\mathbb{A}}\) | The total factor productivity enhancement from all comparative advantages of the central city, exogenously given to firms | \({\mathbb{A}} > 1\) |
\(C\) | Cost externalities provided to firms by all comparative advantages of the central city and urban cost incurred due to the congestion effect | \(C > 0\) |
