Labor specialization, transport costs, and city size
Article Abstract:
A model of pre-industrial urbanization shows that specialization of labor is an inevitable outcome of moving from an agricultural economy to an industrial economy. This is due to the agglomeration observed as a result of increasing returns on labor specialization. This is regardless of the cities' size or industries. Dispersion occurs only when the city is such a size as to make transportation costs significant.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 1998
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Transport costs and rural development
Article Abstract:
An initially negative but definitely positive relationship between reductions in transport costs and rural development exists. A two-region general equilibrium model with firm and worker spatial mobility emphasizes the company and household location effects of costly transport-service utilized by both industry and agriculture in the light of scale economies and product differentiation.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 1998
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