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THE IMPACT OF CHANGING BUSINESS AGGLOMERATION ECONOMIES ON METROPOLITAN GROWTH
Author(s) -
Dierx Adriaan H.
Publication year - 1986
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1986.tb00987.x
Subject(s) - economies of agglomeration , metropolitan area , economics , economic geography , economies of scale , production (economics) , scale (ratio) , scale effects , economic growth , geography , macroeconomics , microeconomics , cartography , archaeology
ABSTRACT This paper aims to determine the impact of changes in the parameters measuring economies of scale in production on metropolitan growth. The degree of spatial concentration of sectoral economic activity and patterns of trade between two metropolitan areas are explained with a two‐sector model borrowed from the international trade literature. It is shown that sectoral production will become more concentrated as the importance of intrasectoral economics of scale relative to intersectoral scale economics increases. An increase in the relative size of intrasectoral business agglomeration economics will not necessarily lead to complete specialisation by either metropolitan area.