Chapter Overview
Cities as economic engines, urban development, and metropolitan economies.
This chapter examines the economic geography of cities and metropolitan areas. We explore why cities exist, how they grow and change, and why they have become the dominant sites of economic activity in the contemporary world. From urban land markets to gentrification, from global cities to shrinking cities, this chapter provides tools for understanding the complex economic dynamics that shape urban life and landscapes.
Chapter Resources
Required Reading
- Textbook: Chapter 14
- Coe, Kelly & Yeung (2019)
- Economic Geography: A Contemporary Introduction
Download Slides
Video Content
- Multiple lecture sections
- Urban economies
- Watch at your own pace
Video Lectures
Section 14.1: Why Cities Exist ~15 minutes
The economic foundations of urbanization: agglomeration benefits, transportation costs, and the forces that concentrate economic activity in cities.Section 14.2: Urban Land Markets & Structure ~15 minutes
How urban land markets work and shape the internal structure of cities: bid-rent theory, zoning, and patterns of urban land use.
Section 14.3: Global Cities & Urban Hierarchies ~15 minutes
The rise of global cities as command centers of the world economy and how cities are connected in hierarchical urban systems.
Section 14.4: Gentrification & Urban Inequality ~15 minutes
The causes and consequences of gentrification, displacement, and the growing economic polarization within cities.
Key Takeaways
Urban Economy Fundamentals
- Cities exist because of the economic benefits of agglomeration, which outweigh the costs of urban congestion
- Urban land markets allocate space based on willingness to pay, creating predictable patterns of land use
- Global cities serve as command and control centers for the world economy, concentrating advanced services
- Urban economic growth often increases inequality and creates pressures like gentrification and displacement
Key Concepts
- Urban Agglomeration: The concentration of people and economic activity in cities due to proximity benefits
- Bid-Rent Theory: Model explaining how land values decline with distance from the city center
- Global City: Major metropolitan area that serves as a key node in the global economic network
- Gentrification: Process of neighborhood change involving influx of higher-income residents and rising property values
- Urban Hierarchy: The ranked system of cities based on size, function, and economic importance
Discussion Questions
Consider these questions as you watch the lectures and complete the readings:
- What makes some cities more economically successful than others, and can this success be replicated?
- How has remote work changed the economic advantages of cities, and will these changes persist?
- Is gentrification ultimately good or bad for cities, and for whom does it create benefits or harms?
- How should cities balance economic growth with affordability and preventing displacement?
- What is the future of shrinking cities and regions losing population to major metropolitan areas?