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Definition matters. Metropolitan areas and agglomeration economies in a large-developing country

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  • Bosker, Maarten
  • Park, Jane
  • Roberts, Mark
Abstract
A variety of approaches to delineating metropolitan areas have been developed. Systematic comparisons of these approaches in terms of the metro area landscape that they generate are however few. Our paper aims to fill this gap. We focus on Indonesia and make use of data on commuting flows, spatially fine-grained population, and remotely sensed nighttime lights to construct metropolitan areas using several approaches that have been developed in the literature. We find that the maps and characteristics of Indonesia's metro area landscape generated when using a commuting flow approach differ substantially from those generated using other approaches. Moreover, combining infomation on the metro areas generated by the different approaches with detailed micro-data from Indonesia's national labor force survey, we show that the estimated agglomeration wage premium for Java-Bali tends to fall when using a more restrictive definition of metro areas. This is not the case for the rest of Indonesia, for which we, moreover, find a much lower estimated agglomeration wage premium. We provide an explanation for these findings, and also tentatively probe the factors behind Indonesia's agglomeration wage premium.

Suggested Citation

  • Bosker, Maarten & Park, Jane & Roberts, Mark, 2021. "Definition matters. Metropolitan areas and agglomeration economies in a large-developing country," Journal of Urban Economics, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:juecon:v:125:y:2021:i:c:s0094119020300462
    DOI: 10.1016/j.jue.2020.103275
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    Cited by:

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    2. Galdo, Virgilio & Li, Yue & Rama, Martin, 2021. "Identifying urban areas by combining human judgment and machine learning: An application to India," Journal of Urban Economics, Elsevier, vol. 125(C).
    3. Pierre-Philippe Combes & Clément Gorin & Shohei Nakamura & Mark Roberts & Benjamin Stewart, 2023. "An Anatomy of Urbanization in Sub-Saharan Africa," SciencePo Working papers Main hal-04345529, HAL.
    4. Julio A. Berdegué & Tatiana Hiller & Juan Mauricio Ramírez & Santiago Satizábal & Isidro Soloaga & Juan Soto & Miguel Uribe & Olga Vargas, 2019. "Delineating functional territories from outer space," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-24, December.
    5. Fischer, Bruno & Meissner, Dirk & Vonortas, Nicholas & Guerrero, Maribel, 2022. "Spatial features of entrepreneurial ecosystems," Journal of Business Research, Elsevier, vol. 147(C), pages 27-36.
    6. Xiaoxuan Zhang & John Gibson, 2024. "How well do gridded population estimates proxy for actual population changes? Evidence from four gridded data products and three censuses for China," Working Papers in Economics 24/07, University of Waikato.
    7. Bosker, Maarten, 2022. "City origins," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    8. Stuart Donovan & Thomas de Graaff & Henri L. F. de Groot & Carl C. Koopmans, 2024. "Unraveling urban advantages—A meta‐analysis of agglomeration economies," Journal of Economic Surveys, Wiley Blackwell, vol. 38(1), pages 168-200, February.
    9. Jedwab,Remi Camille & Pereira,Daniel & Roberts,Mark, 2019. "Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities," Policy Research Working Paper Series 9040, The World Bank.
    10. Amedeo Ganciu & Mara Balestrieri, 2023. "Visual Analysis to Assess Attraction and Organisation of Contemporary Metropolitan Systems—A Case Study of Central and Northern Italy," Sustainability, MDPI, vol. 16(1), pages 1-25, December.
    11. Yifu Ou & Euijune Kim & Xingjian Liu & Kyung-Min Nam, 2023. "Delineating functional regions from road networks: The case of South Korea," Environment and Planning B, , vol. 50(6), pages 1677-1694, July.
    12. Quintero, Luis E. & Roberts, Mark, 2023. "Cities and productivity: Evidence from 16 Latin American and Caribbean countries," Journal of Urban Economics, Elsevier, vol. 136(C).

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    More about this item

    Keywords

    Metro areas; Urban definitions; Agglomeration economies; Indonesia;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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