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Hierarchies of Cities and the Spatial Filtering of Industrial Development

Year: 1983

Type: article

Abstract: ABSTRACT The spatial division of labor and external economics associated with the nation's hierarchical system of cities are postulated to be part of the process involved in the spatial filtering of industrial development. In this process high labor costs in metropolitan areas cause less competitive industries to restructure their operations or be priced out of the larger labor markets. The industries priced out of the markets locate all or some of their operations in smaller settlements in more distant areas where labor costs are lower, given sufficient external economics. The research supports this general proposition but reveals differences based upon the types of industries and the location of their headquarter facilities. It also reveals significant differences in the locational patterns and site selection criteria of different types of plants established by local, national and foreign firms; these differences foster the development of spatially bifurcated or dual labor markets that are associated with regional city size distributions.

Source: Papers of the Regional Science Association

DOI: 10.1007/bf01939919

Author: Barry M. Moriarty

Institution: University of North Carolina at Chapel Hill

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $2,740