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Urbanisation Patterns: European vs Less Developed Countries

  • Diego Puga

We develop a model in which the interaction between transport costs, increasing returns, and labour migration across sectors and regions creates a tendency for urban agglomeration. Demand from rural areas favours urban dispersion. European urbanisation took place mainly in the XIX Century, with higher costs of spatial interaction, weaker economics of scale, and less elastic supply of labour to the urban sector than in LDCs today. These factors, together with a bias in the transport networks of LDCs towards serving larger cities, could help explain why European countries have developed balanced urban systems while primate cities dominate in LDCs.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0305.

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Date of creation: Sep 1996
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Handle: RePEc:cep:cepdps:dp0305
Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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  13. Fujita, Masahisa & Mori, Tomoya, 1996. "The role of ports in the making of major cities: Self-agglomeration and hub-effect," Journal of Development Economics, Elsevier, vol. 49(1), pages 93-120, April.
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  18. Krugman, Paul & Venables, Anthony J, 1993. "Integration, Specialization and Adjustment," CEPR Discussion Papers 886, C.E.P.R. Discussion Papers.
  19. Scotchmer, Suzanne & Thisse, Jacques-Francois, 1992. "Space and Competition: A Puzzle," The Annals of Regional Science, Springer, vol. 26(3), pages 269-86, September.
  20. Fujita, Masahisa, 1988. "A monopolistic competition model of spatial agglomeration : Differentiated product approach," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 87-124, February.
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