Breaking into Tradables : Urban Form and Urban Function in a Developing City

Many cities in developing economies, particularly in Africa, are experiencing urbanization without industrialization. This paper conceptualizes this in a framework in which a city can produce non-tradable goods and -- if it is sufficiently competit...

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Main Author: Venables, Anthony J.
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/195191485180968902/Breaking-into-tradables-urban-form-and-urban-function-in-a-developing-city
http://hdl.handle.net/10986/25959
id okr-10986-25959
recordtype oai_dc
spelling okr-10986-259592021-06-08T14:42:47Z Breaking into Tradables : Urban Form and Urban Function in a Developing City Venables, Anthony J. city urban development structural transformation tradable goods urbanization Many cities in developing economies, particularly in Africa, are experiencing urbanization without industrialization. This paper conceptualizes this in a framework in which a city can produce non-tradable goods and -- if it is sufficiently competitive -- also internationally tradable goods, potentially subject to increasing returns to scale. A city is unlikely to produce tradables if it faces high urban and hinterland demand for non-tradables, or high costs of urban infrastructure and construction. The paper shows that, if there are increasing returns in tradable production, there may be multiple equilibria. The same initial conditions can support dichotomous outcomes, with cities either in a low-level (non-tradable only) equilibrium, or diversified in tradable and non-tradable production. The paper demonstrates the importance of history and expectations in determining outcomes. Essentially, a city can be built in a manner that makes it difficult to attract tradable production. This situation might be a consequence of low (and self-fulfilling) expectations or history. The predictions of the model are consistent with several observed features of African cities. 2017-01-30T20:37:36Z 2017-01-30T20:37:36Z 2017-01 Working Paper http://documents.worldbank.org/curated/en/195191485180968902/Breaking-into-tradables-urban-form-and-urban-function-in-a-developing-city http://hdl.handle.net/10986/25959 English en_US Policy Research Working Paper;No. 7950 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic city
urban development
structural transformation
tradable goods
urbanization
spellingShingle city
urban development
structural transformation
tradable goods
urbanization
Venables, Anthony J.
Breaking into Tradables : Urban Form and Urban Function in a Developing City
geographic_facet Africa
Sub-Saharan Africa
relation Policy Research Working Paper;No. 7950
description Many cities in developing economies, particularly in Africa, are experiencing urbanization without industrialization. This paper conceptualizes this in a framework in which a city can produce non-tradable goods and -- if it is sufficiently competitive -- also internationally tradable goods, potentially subject to increasing returns to scale. A city is unlikely to produce tradables if it faces high urban and hinterland demand for non-tradables, or high costs of urban infrastructure and construction. The paper shows that, if there are increasing returns in tradable production, there may be multiple equilibria. The same initial conditions can support dichotomous outcomes, with cities either in a low-level (non-tradable only) equilibrium, or diversified in tradable and non-tradable production. The paper demonstrates the importance of history and expectations in determining outcomes. Essentially, a city can be built in a manner that makes it difficult to attract tradable production. This situation might be a consequence of low (and self-fulfilling) expectations or history. The predictions of the model are consistent with several observed features of African cities.
format Working Paper
author Venables, Anthony J.
author_facet Venables, Anthony J.
author_sort Venables, Anthony J.
title Breaking into Tradables : Urban Form and Urban Function in a Developing City
title_short Breaking into Tradables : Urban Form and Urban Function in a Developing City
title_full Breaking into Tradables : Urban Form and Urban Function in a Developing City
title_fullStr Breaking into Tradables : Urban Form and Urban Function in a Developing City
title_full_unstemmed Breaking into Tradables : Urban Form and Urban Function in a Developing City
title_sort breaking into tradables : urban form and urban function in a developing city
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/195191485180968902/Breaking-into-tradables-urban-form-and-urban-function-in-a-developing-city
http://hdl.handle.net/10986/25959
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