ECON 313 Chapter Notes - Chapter 7: Informal Sector, Economies Of Agglomeration, Gigantism
3 May 2016
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Urban bias: notion that most g"vts in developing countries favour the ruban sector in their d"vt policies, creating a widening gap b/w the urban & rural economies. Rural-urban migration: m"vt of people from rural villages/towns/farms to urban centers in search of jobs. Cities formed because provide cost advantages to producers & consumers from agglomeration economies. Agglomeration economies: cost advantages to producers & consumers from location in cities & town, which takes the forms of urbanization economies & localization economies. Urbanization economies: agglomeration effects associated w/general growth of a concentrated geographic region. Localization economies: agglomeration effects captured by particular sectors of the economy, as they grow in an area. City: area w/relatively high population density that contains set of closely related activities: firms learn from other firms doing similar work, can contract out work when large order. Industrial clusters increasingly common in developing countries, significant in emerging industrial competitiveness, can generate more specialized employment.
