Skip to main content

Agglomeration, Regional Growth, and Economic Development

  • Chapter
  • First Online:
Metropolitan Regions

Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

Abstract

In the summer of 2007, the United Nations Population Fund released a report forecasting greatly increased levels of urbanization during the next two decades, especially in the developing world (United Nations 2007a). The report declared that for the first time in recorded history, more than half the world’s population resided in urban – not rural – areas. At roughly the same time, another agency of the United Nations (UN-Habitat) issued a report highlighting the slums and deplorable living conditions in cities in developing countries and estimating that at the end of 2007 there were more than a billion slum dwellers, largely in developing countries (United Nations 2007b). This latter report argued that in many cases the economic circumstances of urban migrants are worse than those of rural peasants. Four years earlier, it had been reported, also by the UN (United Nations 2003), that surveys of member governments eliciting their attitudes towards urbanization found that the “vast majority” of these governments would wish to shift populations back to rural areas and stem the tide of urbanization that has been experienced around the world.

Previous revisions of this paper were presented at the Metropolitan Regions Workshop sponsored by Jonkoping University, Linkoping, Sweden, April 2008, and at the Dialogue on Urbanization and National Growth Strategies, Washington, DC, April 2008. I am grateful for the comments of conference participants and also for the comments of Patricia Annez and Robert Buckley. Portions of this draft have benefited from conversations with Vernon Henderson and Stephen Malpezzi.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Ades A, Glaeser E (1995) Trade and circuses: explaining urban giants. Q J Econ 110(1):195–228

    Article  Google Scholar 

  • Arzaghi M, Henderson JV (2006) Networking off Madison Avenue (unpublished paper)

    Google Scholar 

  • Au C-C, Henderson JV (2006) Are Chinese cities too small? Rev Econ Stud 73(3):549–576

    Article  Google Scholar 

  • Becker CM, Morrison AR (1999) Chapter 43. Urbanization in transforming economies. In: Paul C, Edwin SM (eds) Handbook of regional and urban economics. Elsevier, Amsterdam

    Google Scholar 

  • Carlton DW (1983) The location and employment choices of new firms: an econometric model with discrete and continuous endogenous variables. Rev Econ Stat 65(3):440–449

    Article  Google Scholar 

  • CERAP (China Economic Research and Advisory Programme) (2007) Urbanization in China. Professional report #P07-001, Institute of Business and Economic Research. University of California, Berkeley

    Google Scholar 

  • Chen Y (1996) Impact of regional factors on productivity in China. J Reg Sci 36(3):417–436

    Article  Google Scholar 

  • Collier P (2007) The bottom billion: why the poorest countries are failing and what can be done about it. Oxford University Press, London

    Google Scholar 

  • Da Mata D, Deichmann U, Henderson JV, Lall SV, Wang HG (2007) Determinants of city growth in Brazil. J Urban Econ 62(2):252–272

    Article  Google Scholar 

  • Deichmann U, Kaiser K, Lall SV, Shalizi Z (2005) Agglomeration, transport, and regional development in Indonesia. World Bank Policy Research Working Paper No. 3477

    Google Scholar 

  • Dekle R, Eaton J (1999) Agglomeration and land rents: evidence from the prefectures. J Urban Econ 46(2):200–214

    Article  Google Scholar 

  • Dobkins L, Ioannides Y (1998) Dynamic evolution of the U.S. city size distribution. In: Huriot J-M, Thisse J-F (eds) The economics of cities. Cambridge University Press, New York

    Google Scholar 

  • Duranton G, Puga D (2004) Microfoundations of urban agglomeration economies. In: Henderson JV, Thisse J-F (eds) Handbook of regional and urban economics, vol 4. Elsevier, Amsterdam

    Google Scholar 

  • Evans T (2007) Research for urban health: towards a global agenda. World Health Organization Global Summit, Bellagio

    Google Scholar 

  • Fay M, Opal C (2000) Urbanization without growth: a not-so-uncommon phenomenon. World bank policy research working paper #2412. World Bank, Washington, DC

    Google Scholar 

  • Fujita M, Krugman P, Venables A (1999) The spatial economy. MIT Press, Cambridge

    Google Scholar 

  • Gabaix X (1999) Zipf’s law for cities: an explanation. Q J Econ 114(3):739–767

    Article  Google Scholar 

  • Gabriel SA, Rosenthal SS (2004) Quality of the business environment versus quality of life: do firms and households like the same cities? Rev Econ Stat 86(1):438–444

    Article  Google Scholar 

  • Glaeser EL, Mare DC (2001) Cities and skills. J Labor Econ 19(21):316–342

    Article  Google Scholar 

  • Glaeser EL, Scheinkman J, Shleifer A (1995) Economic growth in a cross-section of cities. J Monetary Econ 36:117–143

    Article  Google Scholar 

  • Glaeser E, Kallal H, Scheinkman J, Schleifer A (1992) Growth in cities. J Polit Econ 100(6):1126–1152

    Article  Google Scholar 

  • Greenstone M, Moretti E, Hornbeck R (2007) Identifying agglomeration spillovers: evidence from million dollar plants (unpublished paper)

    Google Scholar 

  • Hausmann R, Rodrik D (2002) Economic development as self discovery. NBER working paper #8952, May 2002

    Google Scholar 

  • Hausmann R, Rodrik D (2006) Doomed to choose: industrial policy as predicament, John F. Kennedy School of Government (unpublished paper)

    Google Scholar 

  • Henderson JV (2003b) Marshall’s scale economies. J Urban Econ 53(1):1–28

    Article  Google Scholar 

  • Henderson JV, Kuncoro A (1996) Industrial centralization in Indonesia. World Bank Econ Rev 10(3):513–540

    Article  Google Scholar 

  • Henderson J, Vernon AK, Turner M (1995) Industrial development in cities. J Polit Econ 103(5):1067–1085

    Article  Google Scholar 

  • Henderson J, Vernon TL, Lee JY (2001) Scale externalities in Korea. J Urban Econ 49(3):479–504

    Article  Google Scholar 

  • Hoover EM (1975) An introduction to regional economics, 2nd edn. Alfred A. Knopf, New York

    Google Scholar 

  • Jacobs J (1969) The economy of cities. Random House, New York

    Google Scholar 

  • Jaffe AB, Trajtenberg M, Henderson R (1993) Geographic localization of knowledge spillovers as evidenced by patent citations. Quart J Econ 108:577–598

    Article  Google Scholar 

  • Kopits E, Cropper M (2005) Traffic fatalities and economic growth. Accid Anal Prev 37(1):169–178

    Article  Google Scholar 

  • Lall SV, Koo J, Chakravorty S (2003) Diversity matters: the economic geography of industry location in India. World Bank policy research working paper #3072. World Bank, Washington, DC

    Google Scholar 

  • Lall SV, Selod H, Shalizi Z (2006) Rural urban migration in developing countries: a survey of theoretical predictions and empirical findings. World Bank policy research working paper #3915. World Bank, Washington, DC

    Google Scholar 

  • Lee YJ, Zang H (1998) Urbanization and regional productivity in Korean manufacturing. Urban Stud 35(11):2085–2099

    Article  Google Scholar 

  • Lipton M (1976) Why poor people stay poor: urban bias in world development. Harvard University Press, Cambridge

    Google Scholar 

  • Lipton M (1993) Urban bias: of consequences, classes and causality. J Dev Stud 29(4):229–258

    Article  Google Scholar 

  • Lucas RE (1988a) On the mechanics of economic development. J Monetary Econ 22:3–42

    Article  Google Scholar 

  • Mitra A (2000) Total factor productivity growth and urbanization economies: a case of Indian industries. Rev Urban Reg Dev Stud 12(2):97–108

    Article  Google Scholar 

  • Moretti E (2004) Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data. J Econometrics 121:175–212

    Article  Google Scholar 

  • Puga D (1998) Urbanization patterns: European versus less developed countries. J Reg Sci 38(2):231–252

    Article  Google Scholar 

  • Quigley JM (2001) The renaissance in regional research. Ann Reg Sci 35(2):167–178

    Article  Google Scholar 

  • Rappaport J, Sacks J (2003) The United States as a coastal nation. J Econ Growth 8(1):5–46

    Article  Google Scholar 

  • Rauch J (1993) Productivity gains from geographic concentration of human capital: evidence from the cities. J Urban Econ 34:380–400

    Article  Google Scholar 

  • Rosen K, Resnick M (1980) The size distribution of cities: an examination of the Pareto law and primacy. J Urban Econ 8(2):165–186

    Article  Google Scholar 

  • Rosenthal SS, Strange WC (2001) The determinants of agglomeration. J Urban Econ 50(2):191–229

    Article  Google Scholar 

  • Rosenthal SS, Strange WC (2003) Geography, industrial organization, and agglomeration. Rev Econ Stat 85(2):377–393

    Article  Google Scholar 

  • Rosenthal S, Strange WC (2004) Evidence on the nature and sources of agglomeration economies. In: Henderson JV, Thisse J-F (eds) Handbook of urban and regional economics, vol 4 of the series Cities and geography. North Holland, Amsterdam

    Google Scholar 

  • Saxenian A (1994) Regional advantage: culture and competition in silicon valley and route 128. Harvard University Press, Cambridge, MA

    Google Scholar 

  • Soo KT (2005) Zipf’s law for cities: a cross-country investigation. Reg Sci Urban Econ 35:239–263

    Article  Google Scholar 

  • Starrett DA (1974) Principles of optimal location in a large homogeneous area. J Econ Theory 9(4):418–448

    Article  Google Scholar 

  • United Nations (2003) World population policies. United Nations, New York

    Google Scholar 

  • United Nations, UN Population Fund (2007) State of world population 2007: unleashing the potential of urban growth. United Nations, New York

    Google Scholar 

  • United Nations, UN-Habitat (2007) The state of the world’s cities report 2006/2007. Earthscan, London

    Google Scholar 

  • Henderson JV (1999) How urban concentration affects economic growth. World Bank policy research working paper #2326. World Bank, Washington, DC

    Google Scholar 

  • Wheaton WC, Lewis MJ (2002) Urban wages and labor market agglomeration. J Urban Econ 51(3):542–562

    Article  Google Scholar 

  • World Bank (1991) Urban policy and economic development: an agenda for the 1990s. The World Bank, Washington

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to John M. Quigley .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Quigley, J.M. (2013). Agglomeration, Regional Growth, and Economic Development. In: Klaesson, J., Johansson, B., Karlsson, C. (eds) Metropolitan Regions. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-32141-2_2

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-32141-2_2

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-32140-5

  • Online ISBN: 978-3-642-32141-2

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

Publish with us

Policies and ethics