Consumption Cities vs. Production Cities : New Considerations and Evidence
Cities dramatically vary in their sectoral composition across the world, lending credence to the theory that some cities are production cities with high employment shares of urban tradables while others are consumption cities with high shares of urban non-tradables . A model of structural change highlights three paths leading to consumption cities: resource rents from exporting fuels and minerals, agricultural exports, and premature deindustrialization. These findings appear to be corroborated using country- and city-level data. Compared to cities in industrialized countries, cities of similar sizes in resource-rich and deindustrializing countries have lower shares of employment in manufacturing, tradable services and the formal sector, and higher shares of employment in non-tradables and the informal sector. Results on the construction of “vanitous” tall buildings provide additional evidence on the relationship between resource exports and consumption cities. Finally, the evidence suggests that having mostly consumption cities might have economic implications for a country
Year of publication: |
2022
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Authors: | Jedwab, Remi ; Ianchovichina, Elena ; Haslop, Federico |
Publisher: |
[S.l.] : SSRN |
Saved in:
freely available
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