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Large metropolises in the Third World: an explanation

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  • Olga Alonso-Villar

Abstract

In this paper we have developed a model that sets out to explain the existence of megacities in developing countries, in the context of a core-periphery model à la Krugman. As in Krugman and Livas Elizondo (1996), this paper also suggests that agglomeration can be fostered by manufacturers mainly serving the domestic market. However, the analysis goes further by emphasizing that megacities are not only the result of protective trade policies, but also the consequence of the relative position of a country, in terms of industrialization, with respect to the rest of the world.

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Bibliographic Info

Paper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0004.

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Length: 23 pages
Date of creation: Jul 2000
Date of revision:
Handle: RePEc:vig:wpaper:0004

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  1. Hanson, Gordon H., 1996. "Economic integration, intraindustry trade, and frontier regions," European Economic Review, Elsevier, vol. 40(3-5), pages 941-949, April.
  2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  3. Villar, Olga Alonso, 1999. "Spatial distribution of production and international trade: a note," Regional Science and Urban Economics, Elsevier, vol. 29(3), pages 371-380, May.
  4. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
  5. Paul Krugman, 1992. "A Dynamic Spatial Model," NBER Working Papers 4219, National Bureau of Economic Research, Inc.
  6. J.V. Henderson, 1972. "The Sizes and Types of Cities," Working Papers 75, Queen's University, Department of Economics.
  7. James E. Rauch, 1990. "Comparative Advantage, Geographic Advantage, and the Volume of Trade," NBER Working Papers 3512, National Bureau of Economic Research, Inc.
  8. Starrett, David, 1978. "Market allocations of location choice in a model with free mobility," Journal of Economic Theory, Elsevier, vol. 17(1), pages 21-37, February.
  9. Fujita, Masahisa, 1993. "Monopolistic competition and urban systems," European Economic Review, Elsevier, vol. 37(2-3), pages 308-315, April.
  10. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  11. Olga Alonso-Villar, 2001. "Metropolitan areas and public infrastructure," Investigaciones Economicas, Fundación SEPI, vol. 25(1), pages 139-169, January.
  12. Glaeser, E.L. & Ades, A.F., 1993. "Trade and Circuses: Explaining Urban Giants," Harvard Institute of Economic Research Working Papers 1646, Harvard - Institute of Economic Research.
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Cited by:
  1. repec:hal:cesptp:halshs-00096821 is not listed on IDEAS
  2. Marius Brülhart & Pamina Koenig, 2005. "New Economic Geography meets Comecon: Regional Wages and Industry Location in Central Europe," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.01, Université de Lausanne, Faculté des HEC, DEEP.
  3. Andrzej Cieslik, Bartlomiej Rokicki, 2013. "Regional structure of wages in Poland over the period 1995-2009," Equilibrium, Uniwersytet Mikolaja Kopernika, vol. 8, pages 65-78.
  4. Pasquale Commendatore & Ingrid Kubin & Carmelo Petraglia & Iryna Sushko, 2012. "Economic integration and agglomeration in a customs union in the presence of an outside region," Department of Economics Working Papers wuwp146, Vienna University of Economics, Department of Economics.
  5. Catin, Maurice & Luo, Xubei & Van Huffel, Christophe, 2005. "Openness, industrialization, and geographic concentration of activities in China," Policy Research Working Paper Series 3706, The World Bank.
  6. E.A. Haddad & J. Bonet & G.J.D. Hewings & F.S. Perobelli, 2009. "Spatial aspects of trade liberalization in Colombia: A general equilibrium approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 699-732, November.
  7. Jaime Bonet & Eduardo A. Haddad & Geoffrey J.D. Hewings & Fernando S. Perobelli, 2008. "Efectos regionales de una mayor liberación comercial en Colombia: Una estimación con el Modelo CEER," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 005004, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  8. Nuno Crespo & Maria Paula Fontoura, 2008. "Regional Integration and International Economic Geography in the Portuguese Case - an update," Working Papers Department of Economics 2008/51, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  9. Pedro E. Moncarz, 2007. "Regional employment and wages. The effects of transport costs and market potential. An application for Argentina," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(1), pages 75-108, January.
  10. Olga Alonso-Villar, 2006. "A Reflection On The Effects Of Transport Costs Within The New Economic Geography," Working Papers 57, ECINEQ, Society for the Study of Economic Inequality.
  11. repec:hal:journl:halshs-00096821 is not listed on IDEAS
  12. Marius Brülhart, 2011. "The spatial effects of trade openness: a survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(1), pages 59-83, April.
  13. Granato, María Florencia, 2005. "Regional Integration and its Spatial Effects within a Member Country," IOB Working Papers 2005.02, Universiteit Antwerpen, Institute of Development Policy and Management (IOB).
  14. Ricardo Machado Ruiz, 2004. "As Estruturas Urbano-Regionais Do Brasil E Estados Unidos Comparadas: Um Estudo Exploratório," Anais do XI Seminário sobre a Economia Mineira [Proceedings of the 11th Seminar on the Economy of Minas Gerais], in: João Antonio de Paula & et alli (ed.), Anais do XI Seminário sobre a Economia Mineira [Proceedings of the 11th Seminar on the Economy of Minas Gerais] Cedeplar, Universidade Federal de Minas Gerais.
  15. Crozet, Matthieu & Koenig Soubeyran, Pamina, 2004. "EU enlargement and the internal geography of countries," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 265-279, June.
  16. Maurice Catin & Christophe Van huffel, 2003. "Concentration urbaine et industrialisation," Mondes en développement, De Boeck Université, vol. 121(1), pages 87-107.
  17. Ramírez Grajeda, Mauricio & de León Arias, Adrián, 2009. "Spatial implications of international trade under the new economic geography approach," MPRA Paper 18076, University Library of Munich, Germany.
  18. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.
  19. Ramírez Grajeda, Mauricio & Sheldon, Ian, 2009. "Trade openness and city interaction," MPRA Paper 18029, University Library of Munich, Germany.
  20. Olga Alonso-Villar, 2005. "The effects of transport costs within the new economic geography," Working Papers 0502, Universidade de Vigo, Departamento de Economía Aplicada.
  21. Ricardo Machado Ruiz, 2004. "As Estruturas Urbanas Do Brasil: Uma Análise A Partir Do Tamanho Das Cidades," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 122, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

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