Urban-Biased Structural Change

Arbeitspapier

Using firm-level data from France, we document that the shift of economic activity from manufacturing to services over the last few decades has been urban-biased: structural change has been more pronounced in areas with higher population density. This bias can be accounted for by the location choices of large services firms that sort into big cities and large manufacturing firms that increasingly locate in suburban and rural areas. Motivated by these findings, we estimate a structural model of city formation with heterogeneous firms and international trade. We find that agglomeration economies have strengthened for services but weakened for manufacturing. This divergence is a key driver of the urban bias but it dampens aggregate structural change. Rising manufacturing productivity and falling international trade costs further contribute to the growth of large services firms in the densest urban areas, boosting services productivity and services exports, but also land prices.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 10804

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Integration ; Economic Impacts of Globalization: Microeconomic Impacts ; Size and Spatial Distributions of Regional Economic Activity ; Land Use Patterns
• Thema: agglomeration ; cities ; export ; firm sorting ; manufacturing ; productivity ; services ; trade costs

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Chen, Natalie ; Novy, Dennis ; Perroni, Carlo ; Wong, Horng Chern
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/282492
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ