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Large metropolises in the Third World: an explanation

  • Olga Alonso-Villar

In this paper we have developed a model that sets out to explain the existence of megacities in developing countries, in the context of a core-periphery model à la Krugman. As in Krugman and Livas Elizondo (1996), this paper also suggests that agglomeration can be fostered by manufacturers mainly serving the domestic market. However, the analysis goes further by emphasizing that megacities are not only the result of protective trade policies, but also the consequence of the relative position of a country, in terms of industrialization, with respect to the rest of the world.

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Paper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0004.

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Length: 23 pages
Date of creation: Jul 2000
Date of revision:
Handle: RePEc:vig:wpaper:0004
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  1. Paul Krugman, 1992. "A Dynamic Spatial Model," NBER Working Papers 4219, National Bureau of Economic Research, Inc.
  2. James E. Rauch, 1990. "Comparative Advantage, Geographic Advantage, and the Volume of Trade," NBER Working Papers 3512, National Bureau of Economic Research, Inc.
  3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  4. Hanson, Gordon H., 1996. "Economic integration, intraindustry trade, and frontier regions," European Economic Review, Elsevier, vol. 40(3-5), pages 941-949, April.
  5. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  6. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, September.
  7. Raul Livas Elizondo & Paul Krugman, 1992. "Trade Policy and the Third World Metropolis," NBER Working Papers 4238, National Bureau of Economic Research, Inc.
  8. Villar, Olga Alonso, 1999. "Spatial distribution of production and international trade: a note," Regional Science and Urban Economics, Elsevier, vol. 29(3), pages 371-380, May.
  9. Ades, Alberto F & Glaeser, Edward L, 1995. "Trade and Circuses: Explaining Urban Giants," The Quarterly Journal of Economics, MIT Press, vol. 110(1), pages 195-227, February.
  10. Olga Alonso-Villar, 2001. "Metropolitan areas and public infrastructure," Investigaciones Economicas, Fundación SEPI, vol. 25(1), pages 139-169, January.
  11. Olga Alonso-Villar, 2000. "Spatial Distribution of Production and Education," Documentos de trabajo - Analise Economica 0008, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  12. Fujita, Masahisa, 1993. "Monopolistic competition and urban systems," European Economic Review, Elsevier, vol. 37(2-3), pages 308-315, April.
  13. Starrett, David, 1978. "Market allocations of location choice in a model with free mobility," Journal of Economic Theory, Elsevier, vol. 17(1), pages 21-37, February.
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