Introduction
Quigley (1998, 128) acknowledges the heterogeneity and diversity of cities within a given economy. He argues that cities in their diverse nature contribute to economic growth. The distinguishing characteristics of [urban cities have a significant contribution to modern economic growth. The production capacity in the economy is improved by the internal diversity of the urban economies. The article reviews the part that the traditional scale economies and diversities in the improvement of the economic growth. Quigley argues that traditional economies and their diversions enhance the effective utilization of the shared inputs in the economy and also reduce other costs related to the consumption and production of products. He also presents that there are improved “efficiencies related to the operations of the law of large numbers in the metropolitan areas” (Quigley, 1998, 129). He also examines the elements of heterogeneity and their role in conditioning economic growth.
Main body
Quigley explains that the study of cities by economists falls into four categories each of which has led to the understanding of the role of various cities in the growth of the economy as a whole. The first period marked the revolutionization of transportation to the urban centers of goods. The location of firms and households within the city was also a big challenge. The second stage formalized the location of incentives within the urban centers. The third period helps us to understand better the cities and this was referred to the New York City. The fourth period is the period of bursts of advancement in understanding the urban cities and their role in the economy.
Metropolitan areas may achieve greater economic growth by mitigating the transaction costs within the economy. This will ease the trade between individuals and cities.
The article generally tries to analyze the modern economic growth to the various characteristics of the cities. The diversity of the urban cities helps improve economic growth because the production of goods and services is made easier. The diversity of the urban cities then improves economic growth in many ways.
The diversity of urban cities helps in economizing the shared inputs to ensure that the inputs are employed at the optimal level. The transaction costs are also reduced in the economy and this makes the economy operate more efficiently. The diversity of the cities is, therefore, a paramount factor that affects economic growth. Diversity should therefore be respected as a factor for growth in the economy.
Conclusion
This article shows that economic growth could be achieved through various factors that define the diversity of urban cities. Urban cities have people with different cultural backgrounds and they define the diversity of the urban city. Different factors also are homogenous to different cities. That is, they share various characteristics that bring harmony within the economy, and therefore economic growth is achieved.
If the cities with different experiences are put together, then the economic growth will be improved because the economy requires diverse knowledge, skills, and capacity to perform its duties properly. An economy made up of cities of diverse characteristics is likely to experience more economic growth than homogenous cities. The diversity of cities should therefore be valued as factor contributing to economic growth.
Reference List
Quigley, J. M. (1998). Urban Diversity and Economic Growth. Journal of Economic Perspectives—Volume 12, Number 2—1998—Pages 127–138 US: American Economic Association.