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Cities with forking paths? Agglomeration economies in New Zealand 1976–2018

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  • Donovan, Stuart
  • de Graaff, Thomas
  • Grimes, Arthur
  • de Groot, Henri L.F.
  • Maré, David C.

Abstract

We consider whether external urban economic advantages (agglomeration economies) vary with time and space using detailed micro-data on 134 locations in New Zealand for the period 1976–2018. We find subtle temporal variation, with estimates of agglomeration economies peaking in 1991 and then falling by approximately 1 percentage point in the subsequent 15-years. Since 2006, however, estimates have remained broadly stable; the world has not been getting “flatter”. Our results reveal more significant spatial variation: Large cities offer net benefits in production but not consumption, whereas small locations close to large cities (“satellites”) experience agglomeration economies that are stronger than average.

Suggested Citation

  • Donovan, Stuart & de Graaff, Thomas & Grimes, Arthur & de Groot, Henri L.F. & Maré, David C., 2022. "Cities with forking paths? Agglomeration economies in New Zealand 1976–2018," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:regeco:v:95:y:2022:i:c:s0166046222000394
    DOI: 10.1016/j.regsciurbeco.2022.103799
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    More about this item

    Keywords

    Agglomeration economies; Cities; Productivity; Consumption; New Zealand;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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