Analysis Developing Mechanism of Highways and Transportation Using the Theory of Increasing Returns to Scale against the Background of MFOZ

Abstract

This study aims to analyze the theory mechanism behind MFOZ (main functional areas zone) and investigates MFOZ’s effect on high ways and transportation. This study adopts the classic theory of increasing returns to scale of regional economies, draws lessons from the experience of world cities’ development presented in a World Bank paper, and deconstructs the theory mechanism behind MFOZ and its effect on highways and transportation. MFOZ is a big achievement in spatial planning and territorial development, as through increasing returns to scale, the economic zone will attain more agglomeration and improved area integration. Zones with social and ecological functions through public service equalization will realize regional coordinated development. To respond to MFOZ’s requirements, the economic zone should develop and realize transportation integration, while in the limited development zone and prohibited zone, we should realize equal transport service.