Urban-rural cost-of-living differentials in a developing economy

Article Abstract:

The higher average rents and food-staple costs in the urban areas of developing countries suggests that the cost-of-living is higher in those areas. However, the higher average quality of urban housing and the existence of substitution possibilities with other goods in urban areas suggest such a simple comparison overestimates the true cost-of-living differential. An economic demand model for housing and food staples applied to a household data set for the island of Java in Indonesia indicates that traditional rent and price models do lead to an overestimation of true cost-of-living in cities. The overestimation is more pronounced at lower income levels, because the the marginal cost of utility is greater in urban areas, suggesting the cost of urban living is directly proportional to income.

Finance, Indonesia, Urban economics, Rental housing, Cost and standard of living, Cost of living, Java (Programming language), Java

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Urban infrastructure and industrialization

Article Abstract:

Public infrastructure in developing nations is usually in poor condition, and rapid urban population growth places further demands on this sector. Poor infrastructure prevents modern manufacturing enterprises from being profitable and may slow industrialization.

Scientific Research and Development Services, Development, Infrastructure (Economics), International aspects, Industrial development, Industrialization

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Regional convergence and international integration

Article Abstract:

Economic integration between nations tend to favor emerging economic agglomerations. Transaction costs for trade between regions and countries are differentiated by the international nature of the flows.

Business, International trade, Economic geography

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