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From Neighborhoods to NationsThe Economics of Social Interactions$
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Yannis M. Ioannides

Print publication date: 2012

Print ISBN-13: 9780691126852

Published to University Press Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691126852.001.0001

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date: 14 December 2017

Intercity Trade and Long-Run Urban Growth

Intercity Trade and Long-Run Urban Growth

Chapter:
(p.398) Chapter 9 Intercity Trade and Long-Run Urban Growth
Source:
From Neighborhoods to Nations
Author(s):

Yannis M. Ioannides

Publisher:
Princeton University Press
DOI:10.23943/princeton/9780691126852.003.0009

This chapter examines the link between intercity trade and long-run urban growth. It begins by introducing a Ventura-type model of the growth of isolated cities that allows for investment in physical capital and in urban transportation as ways to increase urban productive capacity. It then considers a sample of growth empirics for the United States, European, and Brazilian systems of cities with an emphasis on transportation improvements and factor accumulation. It also describes a model of economic growth in a system of cities that leads to a precise description of the law of motion in dynamic settings of either autarkic cities or specialized cities engaged in intercity trade. Finally, it explores the interrelationships between economic integration, urban specialization, and growth; the Rossi-Hansberg–Wright model of urban structure and its evolution; empirical aspects of urban structure and long-run urban growth; and sequential urban growth and decay.

Keywords:   intercity trade, urban growth, physical capital, urban transportation, empirics, economic growth, autarkic cities, economic integration, urban specialization, urban structure

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