The Dynamic Advantages of Economic Diversity in Cities: Evidence from US History

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Assistant Professor Martin Fiszbein

Department of Economics Assistant Professor Martin Fiszbein will examine eighty years of data on U.S cities to explore the correlation between urban economic diversity (the degree of variety in production activities) and medium and long-term economic performance. Fiszbein will establish conclusive evidence on the impact of economic diversity on growth and development, shed light on the mechanisms through which diversity affects overall development, and discover why it may have larger effects on skill-intensive and knowledge-intensive activities.

This study will address the following questions:

  • What are the determinants of economic growth and development in cities?
  • What is the role of urban economic diversity in the process of urban development?

Many studies argue that specialization and clustering, as opposed to diversification, are good for growth due to the productivity benefits of co-location. Some examining links between diversity and development have found some positive correlations, while others have found no relationship. Fiszbein seeks to add to the existing literature by

  • Providing a a historical perspective on the patterns of urban development across US cities from 1860-1940
  • Identifying the causal effects of economic diversity over different time horizons
  • Analyzing the mechanisms by which diversity affects economic development.

View more projects funded through our Early Stage Urban Research Awards