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Diversity and Specialisation in Cities: Why, Where and When Does it Matter?

Author

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  • Gilles Duranton

    (Department of Geography and Environment, London School of Economics, Houghton Street, London WC2A 2AE, UK, G.Duranton@lse.ac.uk)

  • Diego Puga

    (Department of Economics, University of Toronto, 150 St George Street, Toronto, Ontario M5S 3G7, Canada, dpuga@chass.utoronto.ca)

Abstract

Why are some cities specialised and others diversified? What are the advantages and disadvantages of urban specialisation and diversity? To what extent do the structure of cities and the activities of firms and people in them change over time? How does the sectoral composition of cities influence their evolution? To answer these and related questions, we first distil some key stylised facts from the empirical literature on cities and the composition of their activities. We then turn to a review of different theories looking at such issues, and study the extent to which these theories contribute to the understanding of the empirical regularities.

Suggested Citation

  • Gilles Duranton & Diego Puga, 2000. "Diversity and Specialisation in Cities: Why, Where and When Does it Matter?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 533-555, March.
  • Handle: RePEc:sae:urbstu:v:37:y:2000:i:3:p:533-555
    DOI: 10.1080/0042098002104
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    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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