THE GROWTH OF CITY SYSTEMS WITH HIGH-SPEED RAILWAY SYSTEMS

This paper proposes a dynamic multi-regional growth model with free mo bility of capital and population. The economic system consists of mult iple cities interconnected by high-speed railway systems with each cit y consisting of one production sector as well as residential land use. The railway systems provide production sectors of different cities wi th the opportunity of face-to-face communication for knowledge product ion. The model describes the dynamic interdependence between capital a nd knowledge accumulation, wage and land rent structures, urban patter ns with endogenous city size and inter-city interactability. It is emp hasized how differences in geographic and qualitative factors of high- speed railway systems may affect regional economic development. The mo del simulates the dynamic processes of economic development of city sy stems.