David Maré Adjunct Professor Department of Economics Waikato University Senior Fellow Motu Economic and Public Policy Research Trust NIDEA Launch Symposium November 24 th 2010 Concentration ID: 239293
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ISSUES FOR NEW ZEALAND CITIES
David MaréAdjunct Professor, Department of Economics, Waikato UniversitySenior Fellow, Motu Economic and Public Policy Research TrustNIDEA Launch SymposiumNovember 24th 2010Slide2
Concentration
of population; of productionConnectionsWithin cities; Between citiesCompositionDemographic Change; Industrial structureCities & the tides of economic and demographic changeSlide3
Geographic Concentration is growing
Internationally, growth in city-regionsIn NZ, Auckland Urban Area’s population share is c. 30% (and growing)Concentration improves outcomes. . . and inequalityConcentrationSlide4
Density and firm performance are positively related
10% higher density => 0.7% higher productivity (mfp)6% - 9% Auckland Region premium relative to Cant, Wgtn, WaikatoInnovative firms are located disproportionately in citiesAuckland wages and productivityAuckland firms have 25% higher (labour) productivityHigher premium for industries that are over-represented in Auckland and concentrated within AucklandAuckland wages are 7% higherMuch larger premium at the top of the distributionConcentration – New ZealandSlide5
Connections within cities
Beneficial interactions at small spatial scaleThe paradox of ‘placeless’ technologyIts use complements face-to-face contactCities (and regions) depend on each otherConnectedness more costly in a long thin countryGlobal connectednessFlows of goods, ideas, people, moneyConnectionsSlide6
International Connectedness – Dairy products
Source: Blayney & Gehlar (2005)Slide7
International Connectedness – Passenger links
LondonNew YorkSydneySource: Derudder & Witlox (2005)Slide8
Changing economic composition
Large cities gain from specialisation and diversityCities favour firms that benefit most from theseSmaller cities specialise in industriesChanging demographic compositionGeographic dimensions of population ageingCities are younger and more skilledCity growth through entrants (Immigrants)
CompositionSlide9
Congestion
CoordinationCultural changeClimate pressuresSprawl v intensificationCompetitive advantageChallengesSlide10
Research Directions
ConcentrationConcentration and firm productivityFor which firms?Price effectsConcentration and skillsOptimal Size & Urban FormConnectionsThe Interdependence of NZ system of cities/ regionsTransport & Services linksValue chainsNZ cities within AustralasiaGlobal flowsComposition
Functional specialisation and competitive advantage
Regional cascade of demographic change
Ageing;
MigrationSlide11
Thank you
dave.mare@motu.org.nzwww.waikato.ac.nz/nidea