Relationship between Economic Growth, Urban Concentration and Trade: Evidence from the Asia-Pacific
نویسنده: farahmand، shekoofeh؛
Spring & Summer 2010, Volume 36 - Number 1 علمی-پژوهشی/ISC (10 صفحه - از 47 تا 56)
کلید واژه های ماشینی : Urban Concentration Trade ، Effects Urban Concentration Economic Growth ، Pr ، Relationship Economic Growth ، Pacific ، Concentration Its Effects Economic Growth ، Henderson ، Journal Urban Economics ، Primacy ، Lny
There is a significant relationship between economic growth and the degree of urban concentration, as measured by primacy or the share of the largest city in an urban system. In accordance to urban economic theories, there is an inverse-U shape relationship between urban concentration –urban primacy- and economic growth. That is, as economy grows, urban concentration increases, approaches an optimal level and then declines. If distortion from the optimal level is happened, it can lead economic growth to reduce. Some countries have significantly excessive primacy and some have too little. Additionally, trade is one of the key factors that can affect urban concentration. In this study, urban primacy of some selected Asia- Pacific countries is computed and its effect on economic growth is tested using Solow-Swan growth model. It also looks at the determinants of primacy and policy instruments that might be effective in reducing excessive primacy. Results show that primacy has significant effect on economic growth. Moreover, as trade influences primacy, it can be thus considered as an effective policy instrument in controlling urban over-concentration.خلاصه ماشینی:
"As this occurs, and as economies of scale increase, production of manufactured goods and services become much more efficient through concentration in dense commercial-industrial districts in cities (Fujita and Ogawa, 1982; Helsley and Strange, 1990; Duranton and Puga, 2001; and Henderson, 1974, 2002b). In accordance with empirical studies on growth models like Barro (1997), variables considered for inclusion in matrix X are: log of GDP per capita in t-5 (Not clear) (Lnyi,t-5), government size (Gov), investment growth (Ginv), degree of openness as measured by the sum of exports and imports to GDP (Open), inflation rate (Inf), political rights as a democracy index (Pr), and log of the fertility rate (LnFr). Xi,t includes GDP per capita in logarithm at level and quadratic form (Lny, Lny2), government size, openness, log of urban population as an index for country size (LnUp), the value added of industry to GDP (Ind), log of life expectancy (LnLe) and civil liberalization (CL). Inclusion of the urban primacy effects in the growth model increases the significance level of the considered variables, and the coefficients of determination of the model (overall, within and between) have improved. Here, instrumental variables (IV) for the model are lagged per capita income (in logarithm), government size, growth of investment, openness, inflation, log of fertility rate, primacy as defined before, log of urban population, the industry share, civil liberalization and log of life expectancy. Table 4: Estimation results of growth and urban primacy models in a simultaneous-panel data system v Variables Fixed Effects- IV Variables G2SLS-Random Effects Const."
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