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Definition Matters : Metropolitan Areas and Agglomeration Economies in a Large Developing Country

Author

Listed:
  • Bosker,Maarten
  • Park,Jane
  • Roberts,Mark

Abstract

A variety of approaches to delineate metropolitan areas have been developed. Systematic comparisons of these approaches in terms of the urban landscape that they generate are however few. This paper aims to fill this gap. The paper focuses on Indonesia and makes use of the availability of data on commuting flows, remotely-sensed nighttime lights, and spatially fine-grained population, to construct metropolitan areas using the different approaches that have been developed in the literature. The analysis finds that the maps and characteristics of Indonesia?s urban landscape vary substantially, depending on the approach used. Moreover, combining information on the metro areas generated by the different approaches with detailed micro-data from Indonesia's national labor force survey, the paper shows that the estimated size of the agglomeration wage premium depends nontrivially on the approach used to define metropolitan areas.

Suggested Citation

  • Bosker,Maarten & Park,Jane & Roberts,Mark, 2018. "Definition Matters : Metropolitan Areas and Agglomeration Economies in a Large Developing Country," Policy Research Working Paper Series 8641, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8641
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    Cited by:

    1. de Bellefon, Marie-Pierre & Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent & Gorin, Clément, 2021. "Delineating urban areas using building density," Journal of Urban Economics, Elsevier, vol. 125(C).
    2. Fischer, Bruno & Meissner, Dirk & Vonortas, Nicholas & Guerrero, Maribel, 2022. "Spatial features of entrepreneurial ecosystems," Journal of Business Research, Elsevier, vol. 147(C), pages 27-36.
    3. Xiaoxuan Zhang & John Gibson, 2024. "How well do gridded population estimates proxy for actual population changes? Evidence from four gridded data products and three censuses for China," Working Papers in Economics 24/07, University of Waikato.
    4. Jedwab,Remi Camille & Pereira,Daniel & Roberts,Mark, 2019. "Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities," Policy Research Working Paper Series 9040, The World Bank.
    5. Amedeo Ganciu & Mara Balestrieri, 2023. "Visual Analysis to Assess Attraction and Organisation of Contemporary Metropolitan Systems—A Case Study of Central and Northern Italy," Sustainability, MDPI, vol. 16(1), pages 1-25, December.
    6. Yifu Ou & Euijune Kim & Xingjian Liu & Kyung-Min Nam, 2023. "Delineating functional regions from road networks: The case of South Korea," Environment and Planning B, , vol. 50(6), pages 1677-1694, July.
    7. Dong, Xiaofang & Wang, Yalin, 2024. "The geography of healthcare: Mapping patient flow and medical resource allocation in China," Economics & Human Biology, Elsevier, vol. 55(C).
    8. Combes, Pierre-Philippe & Gorin, Clément & Nakamura, Shohei & Roberts, Mark, 2025. "An anatomy of urbanization in sub-Saharan Africa," Regional Science and Urban Economics, Elsevier, vol. 115(C).
    9. Galdo, Virgilio & Li, Yue & Rama, Martin, 2021. "Identifying urban areas by combining human judgment and machine learning: An application to India," Journal of Urban Economics, Elsevier, vol. 125(C).
    10. Chen, Ting & Gu, Yizhen & Zou, Ben, 2024. "China’s commuting-based metropolitan areas," Journal of Urban Economics, Elsevier, vol. 144(C).
    11. Julio A. Berdegué & Tatiana Hiller & Juan Mauricio Ramírez & Santiago Satizábal & Isidro Soloaga & Juan Soto & Miguel Uribe & Olga Vargas, 2019. "Delineating functional territories from outer space," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-24, December.
    12. Bosker, Maarten, 2022. "City origins," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    13. Quintero, Luis E. & Roberts, Mark, 2023. "Cities and productivity: Evidence from 16 Latin American and Caribbean countries," Journal of Urban Economics, Elsevier, vol. 136(C).

    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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