SPATIAL ECONOMIC INTERDEPENDENCE IN AN URBAN HIERARCHY SYSTEM |
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| Authors: | Jeong Keun Ahn Hugh O Nourse |
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| Institution: | Respectively, Graduate Student and Professor of Real Estate, College of Business Administration, University of Georgia. |
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| Abstract: | ABSTRACT. This paper develops a model to examine the economic interaction between central places and their hinterlands. The model allows interindustry linkages and upward trade flows in an urban hierarchy system. Trade balance equilibrium between hierarchical levels is established by direct mutual interlevel trade, rather than by indirect trade via the rural sector. The economic base multipliers generally increase with city size but occasionally they could be smaller than those of lower places. A continuous urban hierarchy is formed due to their relative location within the system, not to unspecified randomness. |
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