Network cities and externalities

The concept of «agglomeration economies» explains the existence of advantages derived from the concentration of population and activity. However, it does not explain the existence of spatially dynamic external economies. Network economies generated in networks of cities correspond to this last type, since they are generated from the interaction between urban units, linked by a network relationship. The objective of this research is to advance in the study of the relationship between the networks of cities and the generation of external economies. The research is divided in four parts: first we expose the link between networks of cities and external economies. The second part outlines a model for the combined measuring of the concentration and network economies. The third part explains the results of applying the model to a case of study: the network of cities of Catalonia. The results suggest that there is a causal relationship between the organization of the urban units forming networks of cities and the generation of external economies that affect growth and economic development. Finally, conclusions and policy implications are drawn up.