The New Advantages of Economies of Scale in an Era of Deglobalization
The economies of scale at the macro level mean that when a country's population or market size expands,production costs are spread out and division of labor and transactions become more detailed,thereby enhancing economic efficiency,i.e.,larger nations can achieve faster economic growth compared to smaller ones.Over the past few decades of globalization,small nations have enjoyed the economies of scale brought by the global market through participation in international industrial chains,leading to a relatively insufficient emphasis on the scale of large countries in macroeconomic analysis.In the era of deglobalization,larger nations can accumulate higher competitive advantages based on their scale,and the development of knowledge-based economies,especially digital economies,further magnifies the scale advantage of larger nations.Larger nations also exhibit stronger capabilities in spreading the costs of defense and public services,which is particularly significant amid rising geopolitical risks.China,with its population and total economy among the world's leaders,has the foundation to leverage the scale advantages of a large country under the new circumstances.The key lies in expanding domestic consumption,establishing a unified domestic market,and addressing market failures caused by externalities and monopolies,especially requiring improvements in governance mechanisms in land,finance,and the digital economy.Meanwhile,China's substantial industrial system and stronger forward and backward linkages in the industrial chain allow it to strengthen integration with other countries'industrial chains around its own industrial system,promote deep cross-border cooperation,and enhance the efficiency and security of its industries.
NETL
NSTL
万方数据
维普
