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Shrinking population and the urban hierarchy

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  • Shrinking population and the urban hierarchy
  • Kim, Ho Yeon
  • Institute of Developing Economies Japan External Trade Organization


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Title Shrinking population and the urban hierarchy
Similar Titles
Material Type Reports
Author(English)

Kim, Ho Yeon

Publisher

[Chiba]:Institute of Developing Economies Japan External Trade Organization

Date 2012
Series Title; No IDE Discussion Paper / 360
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Territorial Development < National Land Development
Social Development < Population
Holding IDE-JETRO

Abstract

This paper examines population shrinkage leads to changes in urban hierarchy in terms of their relative size and function from the stand point of the new economic geography. We find some salient patterns in which small cities in the agglomeration shadow become relatively bigger as medium industries spill over on them. This appears to be quite robust against a variation in the rate of natural change among cities. Thus, rank-size relationship and the urban hierarchy are partly disrupted as population shrinks. Regarding the welfare of the residents, a lower demand for land initially causes rent to go down, which boosts the utility. However, the illusion is short-lived because markets soon begin to shrink and suppress wages. We also find that it is better to maintain a slow pace of overall population decline in the long-term perspective. (The rest omitted)