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Market Access Approach to Urban Growth

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  • Moon, Yoon Sang

Abstract

This paper studies urban growth in Korean cities. First, I document that population growth patterns change over time and that the current population distribution supports random urban growth. I confirm two empirical laws—Zipf’s law and Gibrat’s law—both of which hold in the period of 1995-2015, but do not hold in the earlier period of 1975-1995. Second, I find a systematic employment growth pattern of Korean cities in spite of the random population growth. I examine market access effects on employment growth. Market access, a geographical advantage, has a significant influence on urban employment growth. The market access effect is higher in the Seoul metropolitan area than in the rest of the country. This effect is stronger on employment growth in the manufacturing industry compared to employment growth in the service industry. These results are robust with various checks (e.g., different definitions of urban areas). The results here suggest that policymakers should consider geographical characteristics when they make policy decisions with respect to regional development.

Suggested Citation

  • Moon, Yoon Sang, 2020. "Market Access Approach to Urban Growth," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 42(3), pages 1-32.
    • Handle: RePEc:zbw:kdijep:225228
    DOI: 10.23895/kdijep.2020.42.3.1
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    More about this item

    Keywords

    Urban Growth; Market Access; Agglomeration Economies; City Size Distributions;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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