Agglomeration, inequality and economic growth

Castells, David; Royuela, Vicente

doi:10.1007/s00168-014-0589-1

Cited by 75 publications

(48 citation statements)

References 47 publications

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“…The focus of these studies has been mainly on assessing whether more concentrated urban structures, as measured by urban primacy, are growth inducing as opposed to testing the growth effect of the size of cities—the topic with which we are concerned in this study. Brülhart and Sbergami () and Castells‐Quintana and Royuela (), however, also use the percentage of the urban population living in cities above 750,000 or 1 million inhabitants as an alternative indicator for urban concentration and thus generate city size related empirical evidence as an interesting “side product.” Both studies find support for the big‐city‐growth‐relationship: the larger the percentage of the population living in cities above these thresholds, the better the economic performance of countries, particularly at low levels of economic development. One drawback of this literature is, however, that it ignores the vast differences in the sizes of cities beyond the selected population threshold—i.e., over 750,000 or 1 million inhabitants.…”

Section: City Size and Economic Growthmentioning

confidence: 99%

Big or Small Cities? On city size and economic growth

Frick¹,

Rodríguez‐Pose²

2017

Growth and Change

101

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Policy makers and academics frequently emphasize a positive link between city size and economic growth. The empirical literature on the relationship, however, is scarce and uses rough indicators for the size of a country's cities, while ignoring factors that are increasingly considered to shape this relationship. In this paper, we employ a panel of 113 countries between 1980 and 2010 to explore whether 1) there are certain city sizes that are growth enhancing and 2) how additional factors highlighted in the literature impact the city size/growth relationship. The results suggest a nonlinear relationship which is dependent on the country's size. In contrast to the prevailing view that large cities are growth-inducing, for a majority of countries relatively small cities of up to 3 million inhabitants are more conducive to economic growth. A large share of the urban population in cities of more than 10 million inhabitants is only growth promoting in countries with an urban population of 28.5 million and more. In addition, the relationship is highly context-dependent: a high share of industries that benefit from agglomeration economies, a well-developed urban infrastructure, and an adequate level of governance effectiveness allow countries to take advantage of agglomeration benefits from larger cities.

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Section: City Size and Economic Growthmentioning

confidence: 99%

Big or Small Cities? On city size and economic growth

Frick¹,

Rodríguez‐Pose²

2017

Growth and Change

101

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“…Differences in estimation methods, data quality, sample coverage, and the initial level of income are some of the factors that could affect the estimated impact of income inequality on economic growth (Castells-Quintana and Royuela, 2014).…”

Section: Income Inequality and Economic Growthmentioning

confidence: 99%

Interrelation among Economic Growth, Income Inequality, and Fiscal Performance: Evidence from Anglo-saxon Countries

Davtyan¹

2016

HPE-RPE

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The interrelation among economic growth, income inequality, and fiscal performance is very complex. The objective of this paper is to analyze the dynamic interrelations among these variables using structural VAR models and to examine transmission channels among them. The empirical analysis is implemented for the UK, the USA, and Canada, using the longest possible consistently measured comparable data on income inequality. The obtained results show that inequality has a negative effect on growth in the case of the UK while the effect is positive for the USA and Canada. An increase in inequality worsens fiscal performance for all the considered countries.

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“…Recent studies added a further dimension to classical convergence studies by including the questions of income distribution and the growth rates of income (Tselios, V. 2009;Amarante, V. 2014;Castells-Quintana, D. and Royuela, V. 2014). For example, as Tselios (2009) suggested, there is a convergence not just in the growth rate of income, but also in growth rates of income inequalities.…”

Section: New Approaches To Unequal Development and Growthmentioning

confidence: 99%

Economic convergence and polarisation: towards a multi-dimensional approach

Benedek

Moldovan

2015

HunGeoBull

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The current increase of regional inequalities in Europe, and in particular in Central and Eastern Europe (CEE) has led to the reconsideration and revival of the concepts of "polarisation" and "convergence" in academic fi elds like regional economics, economic geography and spatial planning as well. In contrast to the classical view on these concepts determined by functionalism and topology, the new theoretical and empirical perspectives are emphasising a multidimensional perspective. In addition, there is an important debate about the relation between economic inequalities and growth. This article provides a critical overview and assessment of the theoretical and empirical work on regional inequalities with special emphasis on theories of economic and social polarisation, regional economic growth, convergence, and social inequalities. We att empt to combine two powerful concepts of polarisation and convergence, emphasising their relational and multi-scalar nature. Building on this basis, we propose a multidimensional concept of socio-economic polarisation, which comprises processes of convergence and divergence, growth and mobility in economic and social dimensions.

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Agglomeration, inequality and economic growth

Cited by 75 publications

References 47 publications

Big or Small Cities? On city size and economic growth

Big or Small Cities? On city size and economic growth

Interrelation among Economic Growth, Income Inequality, and Fiscal Performance: Evidence from Anglo-saxon Countries

Economic convergence and polarisation: towards a multi-dimensional approach

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