Presentation by Joaquim Oliveira Martins, "Agglomeration and network issues: Comments on Kerr and Duranton"

1. Session #6 Agglomeration and
network issues
Comments on Kerr and Duranton
Joaquim Oliveira Martins

2. 2
Urbanization and Income convergence
JAPAN 70
JAPAN 05
BRAZIL 70 BRAZIL 05
INDIA 70
INDIA 05
KOREA 70
KOREA 05
CHINA 70
CHINA 05
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0 10 20 30 40 50 60 70 80 90 100
Income gap (USA = 1)
Urbanisation rate
1970-2005

3. 3
City productivity premia US vs UK
Source: Ahrend et al (2014)
US
UK

4. 4
Cities & labour productivity:
aggregate evidence across OECD
’335-40% LP gaps
Source: OECD Regions @Glance (2013)

5. 5
Proximity to large cities is an anchor for
convergence of other regions
Source: Ahrend and Schumann (2014)

6. 6
Less fragmented urban governance
promotes growth
Source: Ahrend et al (2014)

7. There is a growing policy focus on
metropolitan governance
7
Average number of metropolitan governance bodies created or
reformed in OECD countries per decade
0
5
10
15
20
25
30
35
40
45
50
1951-1960 1961-1970 1971-1980 1981-1990 1991-2000 2001-2010
Source: Ahrend et al (2014)