This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Petrakos, G. C. Search for Related Content Social Bookmarking                   What's this?

Urban Concentration and Agglomeration Economies: Re-examining the Relationship

Athens University of Economics and Business, 76 Patision Street, Athens 10434, Greece

Using a sample of 49 countries and two-stage least squares estimators, the effects of urban concentration on economic growth are examined. Evidence is provided that external agglomeration economies in the largest cities have been exhausted, although the process of concentration continues to have a positive impact on output. This effect however is attributed to internal adjustments caused by concentration in factor intensity and marginal factor productivity in the production activities of urban areas. The results suggest that a meaningful policy aiming to alleviate the social costs of concentration in over-populated metropolises without reducing the overall efficiency of the economy, should follow a long-term strategy of developing smaller cities in the periphery and favouring the operation of smaller-scale, less capital-intensive enterprises in the economy.

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?

This article has been cited by other articles:

				E. J. Feser Enterprises, External Economies, and Economic Development Journal of Planning Literature, February 1, 1998; 12(3): 283 - 302. [Abstract]