Economic Benefits and Drawbacks of Cities and their Growth Implications
AbstractRecent trends in the growth of cities particularly in developing countries (and especially in India and China) are identified. Beneficial and negative sharing mechanisms influencing the growth of cities are examined. Economic benefits of agglomeration arise not so much from the type of economic goods available in a city location (such as common property or local public goods) but from the enhanced operation of processes of economic exchange. Two theoretical implications of the growth of cities are considered, namely: (1) city growth results in growing inequality of income and wealth within the city and (2) a city will expand beyond its optimal size. Nevertheless, the growth of cities is linked with increased levels of per capita income nationally. Worldwide growth of cities is connected with increasing globalization and with rising income inequality.
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Bibliographic InfoPaper provided by University of Queensland, School of Economics in its series Economic Theory, Applications and Issues Working Papers with number 90626.
Date of creation: Sep 2009
Date of revision:
agglomeration economies; China; city-sizes; common property; economic growth; globalization; income distribution; India; open-access resources; quasi-public goods; spillovers; Community/Rural/Urban Development;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-18 (All new papers)
- NEP-GEO-2010-06-18 (Economic Geography)
- NEP-URE-2010-06-18 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tisdell, Clement A. & Alauddin, Mohammad, 2002. "Market-Oriented Reforms in Bangladesh and their Impact on Poverty?," Economic Theory, Applications and Issues Working Papers 90521, University of Queensland, School of Economics.
- Alauddin, Mohammad & Tisdell, Clement A., 2009. "Quantitative Impacts of Teaching Attributes on University TEVAL Scores and their Implications," Economic Theory, Applications and Issues Working Papers 90621, University of Queensland, School of Economics.
- Alauddin, Mohammad & Tisdell, Clement A., 2006. "Students' Evaluation of Teaching Effectiveness: What Surveys Tell and What They Do Not Tell," Economic Theory, Applications and Issues Working Papers 90546, University of Queensland, School of Economics.
- Tisdell, Clement A., 2005. "An Overview and Assessment of The Economics of Leisure," Economic Theory, Applications and Issues Working Papers 90540, University of Queensland, School of Economics.
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