The Impact of Population Agglomeration of an Area on Its Neighbors – Evidence from the US
35 Pages Posted: 5 Aug 2015 Last revised: 25 Mar 2018
Date Written: June 14, 2017
Cities have always been important centers of growth throughout history. However, little is known about the economic spillovers a city produces on its neighboring areas. In this paper, I look at the effect of growth of a city on its surrounding non-city counties, by using the methods outlined in Qu and Lee (2015) and Qu, Wang and Lee (2016). The results show that the impact of a city on its surroundings is inverted U-shaped – at low levels of city GDP per capita, growth of a city creates positive spillovers, however it diminishes as the city gets richer.
Keywords: population agglomeration, spatial econometrics, spillovers
JEL Classification: O18, R1
Suggested Citation: Suggested Citation