Why Cities Emerge and Grow? Explanations of Theoretical and Empirical Studies
The article presents the results of theoretical and empirical studies devoted to looking into reasons of creation and success of the cities. The foundation of cities’ growth is the mechanisms of supporting spatial concentration of economic activity. The author studies two key elements of these proce...
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| Format: | Article |
| Language: | Russian |
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Economic Research Institute of the Far East Branch of the Russian Academy of Sciences
2018-06-01
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| Series: | Prostranstvennaâ Èkonomika |
| Subjects: | |
| Online Access: | http://www.spatial-economics.com/images/spatial-econimics/2018_2/SE.2018.2.134-153.Kolomak.pdf |
| _version_ | 1818230548326252544 |
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| author | Eugenia Anatolyevna Kolomak |
| author_facet | Eugenia Anatolyevna Kolomak |
| author_sort | Eugenia Anatolyevna Kolomak |
| collection | DOAJ |
| description | The article presents the results of theoretical and empirical studies devoted to looking into reasons of creation and success of the cities. The foundation of cities’ growth is the mechanisms of supporting spatial concentration of economic activity. The author studies two key elements of these processes in the framework of microeconomic theory: the increasing returns to scale and external agglomeration effects. Returns to scale are defined by technology, tied to the indivisibility and discretion of output, and are an internal factor not connected with external environment. Agglomeration economy looks into benefits of interacting with agents nearby. The advantages of cities and sources of their development are explained mainly by the agglomeration economy and externalities, divided into localization and urbanization effects. Several mechanisms of explaining city agglomeration economy can be highlighted: 1) distribution of risk; 2) shared usage of indivisible goods; 3) shared usage of a large market of various raw materials and production factors; 4) coordination of skills and work; 5) education, experimentation and accumulation of knowledge. Stability and growth of the cities is defined by combination of factors that have technological and institutional nature. The increasing returns to scale and external effects are supported and strengthened by the market mechanism. As a result, the cities have advantages in creation and shared usage of large output, in generation and distribution of innovations; use the benefits of a wide market, diversity and narrow specialization |
| first_indexed | 2024-12-12T10:36:15Z |
| format | Article |
| id | doaj.art-a04ea3ff88af408ca32c5978b1bb9b4d |
| institution | Directory Open Access Journal |
| issn | 1815-9834 2587-5957 |
| language | Russian |
| last_indexed | 2024-12-12T10:36:15Z |
| publishDate | 2018-06-01 |
| publisher | Economic Research Institute of the Far East Branch of the Russian Academy of Sciences |
| record_format | Article |
| series | Prostranstvennaâ Èkonomika |
| spelling | doaj.art-a04ea3ff88af408ca32c5978b1bb9b4d2022-12-22T00:27:11ZrusEconomic Research Institute of the Far East Branch of the Russian Academy of SciencesProstranstvennaâ Èkonomika1815-98342587-59572018-06-01213415310.14530/se.2018.2.134-153Why Cities Emerge and Grow? Explanations of Theoretical and Empirical StudiesEugenia Anatolyevna Kolomak0Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences; Novosibirsk National Research State UniversityThe article presents the results of theoretical and empirical studies devoted to looking into reasons of creation and success of the cities. The foundation of cities’ growth is the mechanisms of supporting spatial concentration of economic activity. The author studies two key elements of these processes in the framework of microeconomic theory: the increasing returns to scale and external agglomeration effects. Returns to scale are defined by technology, tied to the indivisibility and discretion of output, and are an internal factor not connected with external environment. Agglomeration economy looks into benefits of interacting with agents nearby. The advantages of cities and sources of their development are explained mainly by the agglomeration economy and externalities, divided into localization and urbanization effects. Several mechanisms of explaining city agglomeration economy can be highlighted: 1) distribution of risk; 2) shared usage of indivisible goods; 3) shared usage of a large market of various raw materials and production factors; 4) coordination of skills and work; 5) education, experimentation and accumulation of knowledge. Stability and growth of the cities is defined by combination of factors that have technological and institutional nature. The increasing returns to scale and external effects are supported and strengthened by the market mechanism. As a result, the cities have advantages in creation and shared usage of large output, in generation and distribution of innovations; use the benefits of a wide market, diversity and narrow specializationhttp://www.spatial-economics.com/images/spatial-econimics/2018_2/SE.2018.2.134-153.Kolomak.pdfcityscale economyagglomeration economysharingdistributionmatchinglearning |
| spellingShingle | Eugenia Anatolyevna Kolomak Why Cities Emerge and Grow? Explanations of Theoretical and Empirical Studies Prostranstvennaâ Èkonomika city scale economy agglomeration economy sharing distribution matching learning |
| title | Why Cities Emerge and Grow? Explanations of Theoretical and Empirical Studies |
| title_full | Why Cities Emerge and Grow? Explanations of Theoretical and Empirical Studies |
| title_fullStr | Why Cities Emerge and Grow? Explanations of Theoretical and Empirical Studies |
| title_full_unstemmed | Why Cities Emerge and Grow? Explanations of Theoretical and Empirical Studies |
| title_short | Why Cities Emerge and Grow? Explanations of Theoretical and Empirical Studies |
| title_sort | why cities emerge and grow explanations of theoretical and empirical studies |
| topic | city scale economy agglomeration economy sharing distribution matching learning |
| url | http://www.spatial-economics.com/images/spatial-econimics/2018_2/SE.2018.2.134-153.Kolomak.pdf |
| work_keys_str_mv | AT eugeniaanatolyevnakolomak whycitiesemergeandgrowexplanationsoftheoreticalandempiricalstudies |