Since Qin and Han dynasties, the economic center of China has gone through a process of transformation from the north to the south. In the early stage, the economic center was in the north, while in the later stage, it is in the south, especially in the regions south of the Yangtze River and in the southeast regions, with the demarcation line being the Southern Song Dynasty. This article analyzes four reasons for the transformation of the economic center in ancient China.
1. Path Dependence Factors
Since the Song Dynasty, Hangzhou has been a metropolis with a developed commodity economy. It was endowed with progressive foundations for industries, technology, and institutions, resulting in regional disparities in the later stage.
2. Geographical Factors
The southern region, especially the southeastern coastal provinces, has a long coastline and a relatively humid climate, which are favorable natural geographical factors. What's more, the southern region, especially the southeastern region, has advantages on water carriage. Being near the sea means more convenient transportation, closer proximity to the world market, and faster economic development.
3. Open-up Factors
Since the Song Dynasty, China's foreign trade has mainly occurred in the southeast coastal areas.
4. Entrepreneurship Factors
In the process of economic development in the north and south, the entrepreneurship possessed by the southern region, especially the southeastern region, has become an inherent driving force that is difficult to replicate. Entrepreneurs in the southeastern region have developed the spirits of start-up, hardship, and exploration, which are brave in fighting and taking risks, and the entrepreneurship has been developed and expanded.
