Growth in Australian Cities
First Draft: 20 March, 1996This Version: 17 April, 1996
This paper is an empirical investigation of the determinants of city growthin Australia from 1981 to 1991. Our basic goal is to explain the populationand labour force growth of a cross section of cities in the time period usingvariables representing the initial characteristics of cities. While we find thatcity growth is negatively correlated with initial size, government sectoremployment and a city’s level of specialisation, we also find it to be positivelycorrelated with various measures for the degree of human capital investmentin the city. Our results, while simple and non-structural, mirror theconclusions of studies in the U.S. indicating the importance of studying citylevel growth in order to understand economy-wide growth.
Journal of Economic Literature
Classification numbers: O18, O47 & R11.
. city growth, education, human capital, externalities, specialisation,initial conditions.
This paper builds upon work in Bradley (1995). We thank Glenn Otto for helpful comments. Fundingfor this project from the Australian Research Council is gratefully acknowledged. Responsibility for allviews expressed remain our own.
All correspondence to Joshua Gans, School of Economics, University of New South Wales, Sydney,NSW 2052, Australia; E-Mail: J.Gans@unsw.edu.au; Fax: (02) 313 6337.