This study is to investigate the short- and long-run causal relationship between agglomeration (localization and urbanization) economies and labor productivity in the manufacturing sector of 28 Iranian provinces over an 11-year period, 2001–2011. Fully Modified Ordinary Least Squares (FMOLS) method was used to estimate our long-run panel data model. The empirical findings suggested that localiz...

There have been extensive studies exploring the relationship between agglomeration economies and economic growth. However, far less attention is paid to the nonlinear relationship of urbanization economies–firm productivity nexus, especially in developing countries. This paper aims to explore how urbanization economies impact the total factor productivity (TFP) of research and development (R&D)...

The study investigates the role of agriculture in the process of urbanization. According to Matsuyama (1992), the relationship between agricultural productivity and urbanization depends on the economic openness. In closed economies the relation is positive while for open economies it is negative. This paper empirically tests the role of agricultural productivity on a country’s level of urbaniza...

Urban agglomeration economies are usually divided into two categories: urbanization economies and localization economies. In the 1970s and 1980s, a number of attempts were made to estimate urbanization economies and/or localization economies directly in the production function. Since the work by Glaeser et al. in 1992, however, historical effects on agglomeration called dynamic externalities in...

This paper provides a survey and guide to the literature relevant to urbanization and economic development. The paper starts with some basic facts and trends about urbanization worldwide. It then reviews the traditional twosector urban-rural model, but focuses on the modern version, Krugman’s coreperiphery model. However, two sector models do not capture the notion of an economy composed of man...

The proportion of a country's population living in urban areas is highly correlated with its level of income. Urban areas offer economies of scale and richer market structures, and there is strong evidence that workers in urban areas are individually more productive, and earn more, than rural workers. However, rapid urbanization is also associated with crowding, environmental degradation, and o...

development. Broad sets of economic opportunities accrue to a place by virtue of both its size and its access to larger economies. And, access to larger economies—centers of information, communication, trade, and finance— provides the conduit through which the smaller economy connects to national and international marketplaces. These relationships among economies are basic concepts of central p...

Sustainability of agriculture is challenged by increasing sprawl in urban agglomerations. Under increasing agglomeration economies in large and even medium sized cities, more and more soil is being subtracted to agriculture, depriving agricultural activities of the main production factor. The extent to which the expanding urbanization threatens agricultural development depends on the urban spat...