Explaining the phenomenon of third world urban giants: The effects of trade costs

Research output: Contribution to journalArticle


Traditional push-and-pull factors have been provided as partial explanations to the size of large urban areas in the third world. In addition to these,the growing literature in the field of economic geography-has identified trade costs as an additional fact-or exacerbating the phenomenon. The present study tests econometrically whether higher trade barriers contribute positive to concentration forces. Controlling for traditional push-and-pull effects, I test whether trade costs have lead to addditional concentration. The results suggest mixed support for the traditional push-and-pull effects. Higher trade costs within borders seem to reduce the concentration forces in urban centers. In adddition, I find no evidence that trade barriers across boarders encourage concentration.


  • Rasha Gustavsson
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics
Original languageGerman
Pages (from-to)223
JournalEkonomiska Samfundets Tidskrift
Issue number3
Publication statusPublished - 2002
Publication categoryResearch