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The Dynamics of Urbanisation

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  • Diego Puga

Abstract

This paper considers the urbanisation dynamics induced by the migration decision of workers and the locational choice of the monopolistically competitive vertically linked firms. With high interregional transport costs, manufacturing and agriculture takes place in the two regions. With lower transport costs there are multiple equilibria, some involving a unique manufacturing metropolis. In a time of regional integration, the level of urban development of European countries is preserving its balanced system of cities. The emerging urban sector of less developed countries is lead instead into disporportionate metropolitan growth, converging in relative size but diverging in pattern to that of European countries.

Suggested Citation

  • Diego Puga, 1994. "The Dynamics of Urbanisation," CEP Discussion Papers dp0212, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0212
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    Cited by:

    1. Bjorvatn, Kjetil, 1999. "Third World regional integration," European Economic Review, Elsevier, vol. 43(1), pages 47-64, January.
    2. Ayele Gelan, 2007. "Trade Policy and Urban-Rural Inequalities In LDCS: A Simulation Experiment With A New Economic Geography Model," Working Papers id:1068, eSocialSciences.

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