Abstract:Most of the new economic geography models are single-factor mobility new economic geography models, and they turn a blind eye to multi-factors migration between regions. The structure of the single-factor mobility new economic geography model is relatively simple, but the conclusions it draws often deviate from reality and lack the necessary policy insights, making it difficult to reveal the interaction between the interregional mobility of different micro-entities and the spatial evolution of industries. In fact, whether in developed or developing countries, the interregional mobility of entrepreneur and unskilled labor is widespread and far-reaching, which should not be neglected in the new economic geography model for the sake of simplifying the model. This paper assumes that unskilled labor can move freely not only between the industrial and agricultural sectors, but also between regions at a cost, which is fundamentally different from the new economic geography model of footloose entrepreneur. Based on these assumptions, this paper analyzes the spatial equilibrium of industries and factors and their welfare effects. The new conclusions drawn in this paper are mainly as follows: The spatial equilibrium of unskilled labor is determined by the entrepreneurial mobility induced effect and the trade cost effect. when the trade freedom is at a medium level, the unskilled labor follows the entrepreneurial mobility, and the share of the unskilled labor mobility will be gradually reduced with the further increase of trade freedom, and the unskilled labor stops to migration after the trade is completely opened. Multi-factors migration does not completely eliminate the welfare gap between regions, the agglomeration of entrepreneur makes the welfare of the core area much higher than that of the peripheral area, and this gap will not disappear even after trade is fully opened. Changes in the degree of trade freedom will result in a trend of widening and then narrowing the gap of unskilled labor welfare between regions. This paper contributes to the existing literature in two aspects: First, it builds a general equilibrium analytical framework for multi-factors migration, which clarifies the interaction between multi-factors migration and industrial spatial equilibrium. Second, in addition to analyzing the spatial equilibrium of industries, this paper further explores the spatial equilibrium of factors and their welfare levels, which is a useful complement and refinement of existing research. The results show that implementing moderately differentiated regional integration policies, focusing on the creation of local quality, and exploring new mechanism for the two-way flow of factors between regions are conducive to promoting regional coordinated development and realizing common prosperity.