issues for new zealand cities david maré adjunct professor, department of economics, waikato...
TRANSCRIPT
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ISSUES FOR NEW ZEALAND CITIES
David MaréAdjunct Professor,
Department of Economics, Waikato University
Senior Fellow, Motu Economic and Public Policy Research Trust
NIDEA Launch SymposiumNovember 24th 2010
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• Concentration – of population; of production
• Connections– Within cities; Between cities
• Composition– Demographic Change; Industrial structure
Cities & the tides of economic and demographic change
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• Geographic Concentration is growing– Internationally, growth in city-regions– In NZ, Auckland Urban Area’s population share is
c. 30% (and growing)
• Concentration improves outcomes– . . . and inequality
Concentration
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• Density and firm performance are positively related– 10% higher density => 0.7% higher productivity (mfp)
• 6% - 9% Auckland Region premium relative to Cant, Wgtn, Waikato
– Innovative firms are located disproportionately in cities
• Auckland wages and productivity– Auckland firms have 25% higher (labour) productivity
• Higher premium for industries that are over-represented in Auckland and concentrated within Auckland
– Auckland wages are 7% higher• Much larger premium at the top of the distribution
Concentration – New Zealand
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• Connections within cities– Beneficial interactions at small spatial scale– The paradox of ‘placeless’ technology• Its use complements face-to-face contact
• Cities (and regions) depend on each other– Connectedness more costly in a long thin country
• Global connectedness– Flows of goods, ideas, people, money
Connections
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International Connectedness – Dairy products
Source: Blayney & Gehlar (2005)
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International Connectedness – Passenger links
London
New York
SydneySource: Derudder & Witlox (2005)
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• Changing economic composition– Large cities gain from specialisation and diversity• Cities favour firms that benefit most from these
– Smaller cities specialise in industries• Changing demographic composition– Geographic dimensions of population ageing• Cities are younger and more skilled
– City growth through entrants (Immigrants)
Composition
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• Congestion• Coordination• Cultural change• Climate pressures– Sprawl v intensification
• Competitive advantage
Challenges
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Research DirectionsConcentration
• Concentration and firm productivity– For which firms?– Price effects
• Concentration and skills• Optimal Size & Urban Form
Connections• The Interdependence of NZ
system of cities/ regions– Transport & Services links– Value chains
• NZ cities within Australasia• Global flows
Composition• Functional specialisation and competitive advantage• Regional cascade of demographic change
− Ageing;− Migration