METROPOLITAN ECONOMY Meaning and
Definition
-
Metropolitan economy refers to the economic activity and system within a metropolitan area. A metropolitan area typically encompasses a large city and its surrounding suburbs, forming an interconnected and integrated region. The term "metropolitan economy" emphasizes the economic aspects of this urban area, including the production, distribution, and consumption of goods and services.
A metropolitan economy thrives on the diverse sectors and industries that contribute to its overall economic growth. These sectors often vary depending on the specific characteristics and specialization of the metropolitan area. For instance, a metropolitan economy may include industries such as finance, technology, manufacturing, healthcare, tourism, and education.
The economic dynamics of a metropolitan area are shaped by factors such as population density, infrastructure, transportation, access to markets, and the presence of key institutions. Major metropolitan areas are usually hubs of economic activity, attracting businesses, professionals, and workers seeking employment opportunities, higher wages, and better quality of life.
Metropolitan economies frequently benefit from agglomeration effects, which refer to the positive externalities resulting from the concentration of economic activities in a limited geographical area. These effects include knowledge spill-overs, increased competition, access to a larger labor market, economies of scale, and innovation diffusion.
In summary, a metropolitan economy is the economic system that drives the prosperity and development of a metropolitan area. It encompasses the entire range of economic activities within the region, from production to consumption, and is influenced by various factors unique to each metropolitan area.
Etymology of METROPOLITAN ECONOMY
The word "metropolitan" comes from the Greek word "metropolis", which means "mother city" or "capital city". It is derived from the combination of "meta" meaning "beyond" or "transcending" and "polis" meaning "city".
The term "economy" has its roots in the Greek word "oikonomia", which refers to the management or administration of a household. It is composed of "oikos" meaning "house" and "nomos" meaning "law" or "custom".
When these two words are combined to form "metropolitan economy", it refers to the economic activities and systems that exist within a metropolitan or capital city. It typically implies a complex and integrated economic system with a concentration of businesses, industries, and services in a city or urban area.
