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Large metropolises in the Third World: an explanation

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  • Olga Alonso-Villar

Abstract

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.

Suggested Citation

  • Olga Alonso-Villar, 2000. "Large metropolises in the Third World: an explanation," Working Papers 0004, Universidade de Vigo, Departamento de Economía Aplicada.
  • Handle: RePEc:vig:wpaper:0004
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    References listed on IDEAS

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    1. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
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    6. Fujita, Masahisa, 1993. "Monopolistic competition and urban systems," European Economic Review, Elsevier, vol. 37(2-3), pages 308-315, April.
    7. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    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.
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    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.
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    13. Paul Krugman, 1992. "A Dynamic Spatial Model," NBER Working Papers 4219, National Bureau of Economic Research, Inc.
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    Cited by:

    1. E.A. Haddad & J. Bonet & G.J.D. Hewings & F.S. Perobelli, 2009. "Spatial aspects of trade liberalization in Colombia: A general equilibrium approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 699-732, November.
    2. Mauricio Ramírez Grajeda & Ian M. Sheldon, 2015. "Trade Openness and City Interaction," World Scientific Book Chapters,in: THE REGION AND TRADE New Analytical Directions, chapter 10, pages 267-318 World Scientific Publishing Co. Pte. Ltd..
    3. Maurice Catin & Christophe Van Huffel, 2003. "Concentration urbaine et industrialisation," Mondes en développement, De Boeck Université, vol. 121(1), pages 87-107.
    4. Jaime Bonet & Eduardo A. Haddad & Geoffrey J.D. Hewings & Fernando S. Perobelli, 2008. "Efectos regionales de una mayor liberación comercial en Colombia: Una estimación con el Modelo CEER," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL Y URBANA 005004, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
    5. Zhang, Yuan & Wan, Guanghua, 2017. "Exploring the Trade–Urbanization Nexus in Developing Economies: Evidence and Implications," ADBI Working Papers 636, Asian Development Bank Institute.
    6. Pasquale Commendatore & Ingrid Kubin & Carmelo Petraglia & Iryna Sushko, 2012. "Economic integration and agglomeration in a customs union in the presence of an outside region," Department of Economics Working Papers wuwp146, Vienna University of Economics and Business, Department of Economics.
    7. Sanguinetti, Pablo & Volpe Martincus, Christian, 2009. "Tariffs and manufacturing location in Argentina," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 155-167, March.
    8. Marius Brülhart & Pamina Koenig, 2005. "New Economic Geography meets Comecon: Regional Wages and Industry Location in Central Europe," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.01, Université de Lausanne, Faculté des HEC, DEEP.
    9. Pedro E. Moncarz, 2007. "Regional employment and wages. The effects of transport costs and market potential. An application for Argentina," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(1), pages 75-108, January.
    10. Ramírez Grajeda, Mauricio & de León Arias, Adrián, 2009. "Spatial implications of international trade under the new economic geography approach," MPRA Paper 18076, University Library of Munich, Germany.
    11. Crozet, Matthieu & Koenig Soubeyran, Pamina, 2004. "EU enlargement and the internal geography of countries," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 265-279, June.
    12. Granato, María Florencia, 2005. "Regional integration and its spatial effects within a member country," IOB Working Papers 2005.02, Universiteit Antwerpen, Institute of Development Policy (IOB).
    13. Catin, Maurice & Luo, Xubei & Van Huffel, Christophe, 2005. "Openness, industrialization, and geographic concentration of activities in China," Policy Research Working Paper Series 3706, The World Bank.
    14. Andrzej Cieslik & Bartlomiej Rokicki, 2013. "Regional Structure Of Wages In Poland Over The Period 1995-2009," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(3), pages 65-78, September.
    15. CRESPO, Nuno & FONTOURA, Maria Paula, 2013. "Regional Integration And Internal Economic Geography - An Empirical Evaluation With Portuguese Data," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(2), pages 99-116.
    16. Marius Brülhart, 2011. "The spatial effects of trade openness: a survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(1), pages 59-83, April.
    17. Olga Alonso-Villar, 2006. "A Reflection On The Effects Of Transport Costs Within The New Economic Geography," Working Papers 57, ECINEQ, Society for the Study of Economic Inequality.
    18. Pedro Moncarz & Michael Bleaney, "undated". "Trade liberalization and the spatial distribution of economic activity within a country," Discussion Papers 07/23, University of Nottingham, GEP.
    19. Ricardo Machado Ruiz, 2004. "As Estruturas Urbanas Do Brasil: Uma Análise A Partir Do Tamanho Das Cidades," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 122, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    20. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.
    21. Parcero, Osiris J. & Papyrakis, Elissaios, 2016. "Income inequality and the oil resource curse," Resource and Energy Economics, Elsevier, vol. 45(C), pages 159-177.
    22. Ricardo Machado Ruiz, 2004. "As Estruturas Urbano-Regionais Do Brasil E Estados Unidos Comparadas: Um Estudo Exploratório," Anais do XI Seminário sobre a Economia Mineira [Proceedings of the 11th Seminar on the Economy of Minas Gerais],in: João Antonio de Paula & et alli (ed.), Anais do XI Seminário sobre a Economia Mineira [Proceedings of the 11th Seminar on the Economy of Minas Gerais] Cedeplar, Universidade Federal de Minas Gerais.
    23. Olga Alonso-Villar, 2005. "The effects of transport costs within the new economic geography," Working Papers 0502, Universidade de Vigo, Departamento de Economía Aplicada.
    24. Nuno Crespo & Maria Paula Fontoura, 2008. "Regional Integration and International Economic Geography in the Portuguese Case - an update," Working Papers Department of Economics 2008/51, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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