Economic Benefits and Drawbacks of Cities and their Growth Implications

Clement Tisdell

No 90626, Economic Theory, Applications and Issues Working Papers from University of Queensland, School of Economics

Abstract: Recent trends in the growth of cities particularly in developing countries (and especially in India and China) are identified. Beneficial and negative sharing mechanisms influencing the growth of cities are examined. Economic benefits of agglomeration arise not so much from the type of economic goods available in a city location (such as common property or local public goods) but from the enhanced operation of processes of economic exchange. Two theoretical implications of the growth of cities are considered, namely: (1) city growth results in growing inequality of income and wealth within the city and (2) a city will expand beyond its optimal size. Nevertheless, the growth of cities is linked with increased levels of per capita income nationally. Worldwide growth of cities is connected with increasing globalization and with rising income inequality.

Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers)
Pages: 24
Date: 2009-09
New Economics Papers: this item is included in nep-cwa, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uqseet:90626

DOI: 10.22004/ag.econ.90626

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