Diverse Cities Thrive as Export Hubs, Boosting Local Economies
The article explores how having a variety of industries in a city affects the benefits of businesses clustering together. The researchers studied how changes in demand for goods produced locally impact job growth in city centers and suburbs. They used a tool called the Export Price Index to measure these effects. The results show that when cities have different kinds of industries, the benefits of businesses being close together vary. In some cases, being near other businesses in a city helps them grow, while in others, having a variety of industries matters more. This helps us understand why some cities thrive when businesses cluster together, while in other places, having a mix of different industries is more important for growth.