Can The Spatial Structure of a Metropolitan Area Bring Regional Economic Benefits? — A Case Study of Melbourne

Wenjie Zhao, Fanlin Ding and Meng Qiu

Applied Economics, 2025, vol. 57, issue 4, 425-440

Abstract: The metropolitan area is a manifestation of a particular stage of urbanization. This study establishes a general development law for metropolitan areas, which consists of three stages: origin, expansion, and maturity. To better understand the economic benefits of these development strategies, we selected the Melbourne metropolitan area as a case study. By quantifying the spatial structure and visualizing the spatial layout of the Melbourne metropolitan area, the results reflect the characteristics of its development mode. On the basis of the index calculation and econometric analysis, this study then evaluates the impact of this kind of spatial structure on the economic benefits of the entire area. Our findings indicate that: 1) the population and industry in Melbourne are dispersed; 2) the current spatial structure of the Melbourne metropolitan area enhances regional economic benefits; 3) the spatial structure of the Melbourne metropolitan area has the potential to further cultivate its dominant industries, allowing the area to become a competitive regional pole in Australia; 4) the financial sector can promote local economic gains, investment, and job creation; 5) benefits from Melbourne may spill over to other regions in Victoria State, eventually forming an urban agglomeration that includes Geelong.

Date: 2025
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DOI: 10.1080/00036846.2024.2304656

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