Urban Primacy, Gigantism, and International Trade: Evidence from Asia and the Americas
Gustavsson  finds that policies that promote international trade increase the size of a country’s largest city relative to the country’s total population, which is defined here as an increase in urban gigantism. In contrast, Ades and Glaeser  report urban gigantism is reduced by freer political institutions and, with less confidence, more open trade. In light of Henderson’s (2000) findings that excessive urban concentration inhibits economic growth, these conflicting results for the relationship between openness and urban gigantism (concentration), which are of great interest for the new economic geography, call for additional study. This study uses two measures of urban concentration and finds that lower international-trade costs are associated with lower primacy, but not with lower gigantism. Unlike Gustavsson, however, we find no evidence that lower trade costs increase gigantism.
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References listed on IDEAS
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- Mutlu, Servet, 1989. "Urban Concentration and Primacy Revisited: An Analysis and Some Policy Conclusions," Economic Development and Cultural Change, University of Chicago Press, vol. 37(3), pages 611-39, April.
- Krugman, Paul & Elizondo, Raul Livas, 1996.
"Trade policy and the Third World metropolis,"
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Elsevier, vol. 49(1), pages 137-150, April.
- J. Vernon Henderson, 1996. "Ways to Think about Urban Concentration: Neoclassical Urban Systems versus the New Economic Geography," International Regional Science Review, SAGE Publishing, vol. 19(1-2), pages 31-36, April.
- repec:pal:imfstp:v:40:y:1993:i:2:p:299-328 is not listed on IDEAS
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- Henderson, Vernon, 2000. "How urban concentration affects economic growth," Policy Research Working Paper Series 2326, The World Bank.
- Sawers, Larry, 1989. "Urban Primacy in Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 37(4), pages 841-59, July.
- Alberto F. Ades & Edward L. Glaeser, 1995. "Trade and Circuses: Explaining Urban Giants," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 195-227.
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