Impact of Urban Agglomeration on Economic Growth of Cities

Abstract

Purpose: Current study attempts to identify the impact of urban agglomerations on economic growth of cities in Punjab, Pakistan. Additionally the study attempted to identify the non-linearity of urban system in Punjab. The study utilized the district level data collected from secondary sources. For the purpose of estimations the study utilized recursive econometric technique. The results of the study showed that market size, district land area and Govt. policy for agglomeration has a positive and significant impact on urban agglomeration. While district vehicle density and district urbanization level negatively and significantly affect urban agglomeration. Results for urban economic growth regression showed that urban agglomeration positively and significantly affect urban economic growth. The study also supported the  shaped non-linearity of the core-periphery (CP) model in Punjab's urban system.