Pattern of Urban Economic Activities (DP IB Geography)

Physical Factors Affecting Urban Economic Activities

• Urban activities can be categorised into three main groups: 

  • Retail: shops and markets

  • Commercial: finance, technology and business

  • Industrial: manufacturing and production

• Industrial areas require large areas of flat land, which are not at risk from hazards

• Retail and commercial areas require smaller areas of land. which are not at risk from hazards

• Urban activities are affected by:

  • Physical factors

  • Land values

  • Proximity to the CBD

  • Planning

Physical factors affecting urban economic activities

• The topography of an area, including the height of the land, areas of water, etc. impacts whether an area is suitable for economic activities

• Hazards such as flooding and landslides can lead to the damage or destruction of:

  • Infrastructure 

  • Industrial/business buildings

• The existence of hazards impacts which areas are suited to economic activities 

• Climate is also a consideration

  • Heavy rainfall can lead to flooding and landslides which would make an area unsuitable for economic activities

Land Values & Urban Economic Activities

Peak land value

• Any land that has 'purpose' will be valuable and cost more to buy or rent

  • Usually, retail shops can make money and seek prime positions

• Therefore, land uses of similar activities will come together, creating 'peaks' and 'troughs' of land values across the urban landscape

• There are two points to consider:

  • The value of the land:

    • Varies across the urban areas

    • Usually decreases from the centre, outwards

    • Higher land prices are also found along main roads, urban hubs and around ring roads

  • The location of the land:

    • Is important to value

    • The closer to key functions, the higher the value

    • Accessibility and desirability increase land value

 Bid-rent theory

• Also known as 'distance decay theory', the price and demand for land change as the distance from the CBD increases

• Different land uses will compete for desirable plots to maximise their profits

• Accessibility increases the potential for more customers

• There is a trade-off between accessibility and the cost of the land

• The closer to the CBD, the more desirable land is to retail and the higher the price charged/paid

• Industry cannot compete with high prices so it tends to be located further away from CBD

• Residential use

  • The highest density of residential is nearest the CBD with flats/apartments, where rents/costs are highest

  • The density of residential decreases but the amount of residential increases with distance from the CBD as the price of land decreases 

Proximity to the Central Business District & Economic Activities

• The Central Business District (CBD) tends to be the oldest part of a city

• Most CBDs are located at the centre of the urban area 

  • Where cities are located on the coast, the CBD is more likely to be close to the port

• Features of the CBD include:

  • Banks, retail and commercial offices

  • Multi-storey development (vertical growth rather than horizontal growth due to lack of space)

  • Land of high value

  • Pedestrianised for high footfall

  • Public transport hub

  • Traffic restrictions on private vehicles

  • Low residential population

  • Main public buildings

Proximity to the CBD

• Proximity is a measure of how close a location is to the CBD

• Areas close to the CBD are:

  • More accessible, which is key for customers and workers 

  • Often prestigious, which is important for business and finance

• Proximity to the CBD affects the type, intensity and diversity of economic activities in a location

Relationship Between Proximity to the CBD and Economic Activities

Planning

• The urban morphology in cities is where growth is planned and demonstrates several key characteristics, including:

  • Structured and organised layout

  • Clearly defined zones for residential, commercial and industrial use

  • Efficient transport infrastructure

  • Open, public spaces

• Where cities have grown up spontaneously, the urban morphology is less structured, and the cities often have:

  • Mixed land use 

  • Informal or squatter settlements

  • Irregular street patterns

  • Chaotic transport infrastructure