Skip to main content Accessibility help
×
Hostname: page-component-8448b6f56d-dnltx Total loading time: 0 Render date: 2024-04-17T05:21:11.169Z Has data issue: false hasContentIssue false

8 - Agglomeration and Market Interaction

Published online by Cambridge University Press:  19 January 2010

Mathias Dewatripont
Affiliation:
Université Libre de Bruxelles
Lars Peter Hansen
Affiliation:
University of Chicago
Stephen J. Turnovsky
Affiliation:
University of Washington
Get access

Summary

INTRODUCTION

The most salient feature of the spatial economy is the presence of a large variety of economic agglomerations. Our purpose is to review some of the main explanations of this universal phenomenon, as they are proposed in urban economics and modern economic geography. Because of space constraints, we restrict ourselves to the most recent contributions, referring the reader to our forthcoming book for a more complete description of the state of the art.

Although using agglomeration as a generic term is convenient at a certain level of abstraction, it should be clear that the concept of economic agglomeration refers to very distinct real-world situations. At one extreme lies the core-periphery structure corresponding to North-South dualism. For example, Hall and Jones (1999) observe that high-income nations are clustered in small industrial cores in the Northern Hemisphere, whereas productivity per capita steadily declines with distance from these cores.

As noted by many historians and development analysts, economic growth tends to be localized. This is especially well illustrated by the rapid growth of East Asia during the last few decades. We view East Asia as comprising Japan and nine other countries, that is, Republic of Korea, Taiwan, Hong Kong, Singapore, Philippines, Thailand, Malaysia, Indonesia, and China. In 1990, the total population of East Asia was approximately 1.6 billion. With only 3.5 percent of the total area and 7.9 percent of the total population, Japan accounted for 72 percent of the gross domestic product (GDP) and 67 percent of the manufacturing GDP of East Asia.

Type
Chapter
Information
Advances in Economics and Econometrics
Theory and Applications, Eighth World Congress
, pp. 302 - 338
Publisher: Cambridge University Press
Print publication year: 2003

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×