Competitiveness and Polycentrism for SMEs in Bogotá Region, Colombia

Competitiveness and Polycentrism for SMEs in Bogotá Region, Colombia

Luis Armando Blanco (Universidad Externado de Colombia, Colombia), Fabio Fernando Moscoso Duran (EAN University, Colombia) and Julián Marcel Libreros (Universidad Jorge Tadeo Lozano, Colombia)
Copyright: © 2020 |Pages: 26
DOI: 10.4018/978-1-5225-9425-3.ch003

Abstract

This chapter studies the dynamics of Bogotá Region based on the New Economic Geography and the recent works on economic development in two big dimensions: the economic and the spatial structure; that is, productivity and polycentrism. The central thesis, supported on an econometric exercise for SMEs in 20 cities in Bogotá-Sabana region, is that with greater strength in the interior of Bogotá and less in the city region, a transition from monocentrism to functional polycentrism is consolidating. Krugman's Edge Cities model concludes that polycentrism comes from a process of spontaneous self-organization and produces a territorial order according to the mysterious ZIP law and consistent with efficiency, equity, and sustainability.
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New Economic And Polycentric Geography

The geographical concentration arises from the interaction of increasing returns to scale, transport costs, and the demand based on the mobility of the productive factors. Generally, economies of scale, and consequently increasing returns, make agglomeration possible and after a certain point of support, concentration becomes self-reinforcing and it is increasingly difficult for a reversal or a rupture in the process to take place. In the “Edge Cities” from Los Angeles, one could see the emergence of an order that is based on a structure of districts that are perfectly differentiated in a spontaneous manner, and that was repeated in a more or less regular way.

The interaction between the mobility of the factors, increasing returns, and transport costs generate forces that favor the agglomeration depending on the tension between the centripetal forces and the centrifugal forces; with a shorter range of centripetal forces than of the latter.

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