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Urban Structure: Its Role In Urban Growth, Net New Business Formation And Industrial Churn

Author

Listed:
  • Bumsoo LEE

    (University of Illinois at Urbana-Champaign)

  • Peter GORDON

    (University of Southern California)

Abstract

Cities are the “engines of growth” because entrepreneurial and cre-ative activities are concentrated in cities. This suggests that cities grow by host-ing new businesses and “churning” industries advantageously. In so doing, cities need to adapt their spatial structure to mitigate negative externalities. Our previous paper (Lee and Gordon 2007) found that the links between urban structure and growth vary across metro size: more clustering in small metros and more dispersion in large metros were associated with faster employment growth. In this paper, we extend our research to investigate to what extent ur-ban spatial structure variables – dispersion and polycentricity – influence net new business formation (NNBF) and industrial “churning” in a cross-section of 79 U.S. metropolitan areas in the 2000s. The results of least squares regression and locally weighted regression analyses are mixed. OLS results for recent years fail to replicate our results for the 1990s. But applying a more powerful LOESS approach does give results for spatial impacts on NNBF and industrial churning that are consistent with the links between spatial structure and urban growth found in the earlier paper.

Suggested Citation

  • Bumsoo LEE & Peter GORDON, 2011. "Urban Structure: Its Role In Urban Growth, Net New Business Formation And Industrial Churn," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 33, pages 137-159.
    • Handle: RePEc:tou:journl:v:33:y:2011:p:137-159
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    References listed on IDEAS

    as
    1. Hanna Maoh & Pavlos Kanaroglou, 2007. "Geographic clustering of firms and urban form: a multivariate analysis," Journal of Geographical Systems, Springer, vol. 9(1), pages 29-52, April.
    2. Ronald L. Moomaw, 1983. "Spatial Productivity Variations in Manufacturing: A Critical Survey of Cross-Sectional Analyses," International Regional Science Review, , vol. 8(1), pages 1-22, June.
    3. Melo, Patricia C. & Graham, Daniel J. & Noland, Robert B., 2009. "A meta-analysis of estimates of urban agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 332-342, May.
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    Cited by:

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    2. Paolo VENERI & David BURGALASSI, 2011. "Spatial Structure and Productivity in Italian NUTS-3 Regions," Working Papers 364, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Haidong Yu & Yong Liu & Juanjuan Zhao & Gen Li, 2019. "Urban Total Factor Productivity: Does Urban Spatial Structure Matter in China?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    4. Wan Li & Bindong Sun & Tinglin Zhang, 2019. "Spatial structure and labour productivity: Evidence from prefectures in China," Urban Studies, Urban Studies Journal Limited, vol. 56(8), pages 1516-1532, June.
    5. Peng Ji & Lilin Yuan, 2023. "Whether polycentric spatial structure is conducive to regional coordinated development: A study on urban agglomerations in China," Growth and Change, Wiley Blackwell, vol. 54(4), pages 940-961, December.

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    More about this item

    Keywords

    URBAN SPATIAL STRUCTURE; URBAN GROWTH; NET NEW BUSINESS FORMATION (NNBF); INDUSTRIAL CHURN;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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