IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v19y1996i1-2p5-30.html
   My bibliography  Save this article

Urban Concentration: The Role of Increasing Returns and Transport Costs

Author

Listed:
  • Paul Krugman

    (Department of Economics Stanford University Stanford CA 94305 USA)

Abstract

Very large urban centers are a conspicuous feature of many developing economies, yet the subject of the size distribution of cities (as opposed to such issues as rural-urban migration) has been neglected by development economists. This article argues that some important insights into urban concentration, especially the tendency of some developing countries to have very large primate cities, can be derived from recent approaches to economic geography. Three approaches are compared: the well-established neoclassical urban systems theory, which emphasizes the tradeoff between agglomeration economies and diseconomies of city size; the new economic geography, which attempts to derive agglomeration effects from the interactions among market size, transportation costs, and increasing returns at the firm level; and a nihilistic view that cities emerge out of a random process in which there are roughly constant returns to city size. The article suggests that Washington consensus policies of reduced government intervention and trade opening may tend to reduce the size of primate cities or at least slow their relative growth.

Suggested Citation

  • Paul Krugman, 1996. "Urban Concentration: The Role of Increasing Returns and Transport Costs," International Regional Science Review, , vol. 19(1-2), pages 5-30, April.
  • Handle: RePEc:sae:inrsre:v:19:y:1996:i:1-2:p:5-30
    as

    Download full text from publisher

    File URL: http://irx.sagepub.com/content/19/1-2/5.abstract
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alejandro Diaz-Bautista, 2005. "Agglomeration Economies, Economic Growth and the New Economic Geography in Mexico," Urban/Regional 0508001, University Library of Munich, Germany.
    2. Ward, William A. & Bhattarai, Madhusudan & Huang, Pei, 1999. "The New Economics Of Distance: Long-Term Trends In Indexes Of Spatial Friction," Working Papers 18808, Clemson University, Department of Agricultural and Applied Economics.
    3. Bastian Heider & Martin T. W. Rosenfeld & Albrecht Kauffmann, 2018. "Does Administrative Status Matter for Urban Growth? Evidence from Present and Former County Capitals in East Germany," Growth and Change, Wiley Blackwell, vol. 49(1), pages 33-54, March.
    4. repec:eee:jotrge:v:19:y:2011:i:4:p:528-536 is not listed on IDEAS
    5. Florence Gofette-Nagot & Bertrand Schmitt, 1997. "Agglomeration economies and spatial configurations in rural areas," Working Papers hal-01526882, HAL.
    6. Mark Lorenzen & Kristina Vaarst Andersen, 2009. "Centrality and Creativity: Does Richard Florida's Creative Class Offer New Insights into Urban Hierarchy?," Economic Geography, Clark University, vol. 85(4), pages 363-390, October.
    7. repec:spr:jknowl:v:8:y:2017:i:4:d:10.1007_s13132-016-0367-7 is not listed on IDEAS
    8. Richard Hu, 2015. "Sustainability and Competitiveness in Australian Cities," Sustainability, MDPI, Open Access Journal, vol. 7(2), pages 1-21, February.
    9. Cattaneo, Cristina & Manera, Matteo & Scarpa, Elisa, 2011. "Industrial coal demand in China: A provincial analysis," Resource and Energy Economics, Elsevier, vol. 33(1), pages 12-35, January.
    10. Michael Wegener & Franz Fuerst, 2004. "Land-Use Transport Interaction: State of the Art," Urban/Regional 0409005, University Library of Munich, Germany.
    11. WA Naudéa, 2001. "Shipping Costs And South Africa'S Export Potential: An Econometric Analysis," South African Journal of Economics, Economic Society of South Africa, vol. 69(1), pages 123-146, March.
    12. Andrey Shmidt & Valentina Antonyuk & Alberto Francini, 2016. "Urban Agglomerations in Regional Development: Theoretical, Methodological and Applied Aspects," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 776-789.
    13. Sabates, Ricardo, 2000. "Job Search and Migration in Peru," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 30(2), pages 1-25.
    14. Moncada Mesa, Jhonny & Loaiza Quintero, Osmar Leandro, 2013. "Análisis de las disparidades regionales en Colombia: una aproximación desde la estadística espacial, 1985 – 2010
      [Analysis of regional disparities in Colombia: an approach from spatial statistics,
      ," MPRA Paper 51405, University Library of Munich, Germany.
    15. repec:wfo:wstudy:41359 is not listed on IDEAS
    16. Flachsbarth, Insa & Grassnick, Nina & Masood, Amjad & Bruemmer, Bernhard, 2018. "The Uneven Spread of Private Food Quality Standards over Time and Space," 2018 Annual Meeting, August 5-7, Washington, D.C. 274197, Agricultural and Applied Economics Association.
    17. Aura Reggiani & Pietro Bucci & Giovanni Russo & Anette Haas & Peter Nijkamp, 2011. "Regional Labour Markets and Job Accessibility in City Network Systems in Germany," Tinbergen Institute Discussion Papers 11-104/3, Tinbergen Institute.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inrsre:v:19:y:1996:i:1-2:p:5-30. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.