Browse By

What is the Role of Urban Planning in Economic Development

Different Urban objects, like residential properties, streets, utility centres, etc., possess a lot more than one purpose. On the one hand, they even have an immediate goal (e.g. housing, security, mobility, etc.). On the other hand, they also perform economic functions due to the fact that they have got an enormous economic impact on the urban environment.

As an example, residential properties not only function as residences but also generate economic value because they provide occupations for retailers and even the real estate industry. Such buildings are also related to a number of expenditures simply because of regional governments need to create the crucial infrastructure and also to ensure that the residents possess accessibility to public schools and services. An increase in gross national product, income, occupations, and other results of urban development, improves the general wellbeing and therefore are simple to measure.

According to an analysis of the World Bank, a more focused urban structure and ArcGis Training makes a better atmosphere for effective economic growth, especially in regions having a minimal amount of economic development. Researchers didn’t, however, find some direct connection, along with some experts determine that the developing urban concentration in most developing countries that don’t appear to induce economic growth. The following article concentrates on the crucial aspects of urban planning along with its economic impact.

Various Types of Urban Objects

Commercial Retail and Services: Commercial retail and services are the industries that have an outstanding effect with respect to GDP and jobs. This impact, however, goes much beyond those industries, like retail and services require inputs from lots of different industries, which includes transportation, finance, real estate, and marketing. Retail facilities additionally create business opportunities for stable companies. Even the most usual issue is shoplifting, however, these kinds of centres must be protected against serious security risks, for example, terrorist attacks.

Residential Objects: Residential areas offer citizens with housing, which is just one of their basic requirements. Besides, they also make communities more attractive to new organizations. Residential development includes a primary economic impact, developing projects for planning experts, designers, lawyers, entrepreneurs, etc… The indirect economic effects of residential areas comprise the production of their regional jobs, taxation, and revenue generated by the inhabitants.

Office Space: Office development also comes with a major economic impact like that of the residential areas. The secondary impact of office development comprises business opportunities for cleaning services, insurance policies, and security companies. The workplace provides long term economic advantages, developing regional jobs and generating revenue and taxes.

Utility Services: Energy, water, waste, along with other utility providers are also essential for its wellbeing, and the creation of utility goods includes an immediate impact on economic development. However, additionally, it has an indirect unfavourable impact on the urban atmosphere, for example, habitat fragmentation, air pollution, land use, along with noise and smell generation. Consequently, these impacts of this creation of utility goods have poor economic effects. Hence, utilities are most commonly found in distant locations.

Industry Areas: Industry performs a vital role in many countries since it functions as a source of various economic activities, including the processing of raw materials along with the production of goods. Consequently, industry areas are really an important part of urban enhancement projects.

Public Facilities and Services: Contrary to a number of other urban developments, social facilities, civic, and open space increase in value as time passes. Additionally, they attract businesses and increase the property value of real estate and land. Apparently, these kinds of facilities also make lots of jobs

Transportation: Transportation is essential to get an economy because it empowers people to transport material objects, such as manufactured goods and organic resources, and skills or knowledge. Better availability for traders, employment, and markets are just a few economic advantages of effective transportation methods

Urban Planning in the Context of Economic Growth

Cities come in all shapes and sizes. Considering the fact that urban planning has a direct influence on economic development, city shape is also essential in the economic context. Cities can be less streamlined, and also their shape has a direct influence on transportation, hence influencing economic development in lots of methods. Compact cities tend to be more appropriate for short trips and allow for developing more affordable transportation systems. Hence, compact urban geometries make a much better environment for both welfare and productivity.

Another essential aspect is that the urban concentration. Most professionals agree that urban concentration produces a lot of benefits, including a decline in poverty and inequality. However, lots of reports devoted to the connection between urban concentration and these kinds of benefits simply concentrate on distinct areas. As it happens, the situation is different from developed and developing countries, along with cities having various varieties of inhabitants. Students who learn ArcGis and study economics need to simply take it into consideration when writing their academic papers about the consequences of urbanization. Hence, in the event that you are certainly one of them, you can take a look at Online Writers Rating to find academic assistance from the experts who’ve access to the most relevant sources.

Analyzing information from the Unified Nations, we can find that developing nations have streamlined urban structures. Urban areas that have more than 50,000 people and more than 100,000 people exhibit the greatest difference, despite the fact that urban concentration has diminished in developing nations during the past 30 years. This shows a declining urban population. Simultaneously, the number of individuals living in urban areas increased to double from 1985 to 2010 in middle-income nations and tripled in the poorest nations.

The developing size of cities and expansion in urbanization rates made developing nations less concentrated. The decline in concentration is generally striking in Latin America, while most Asian nations show a steady development of urban concentration.


In spite of the fact that the economic advantages of urban objects are obvious, it’s difficult to set up a direct link between urban concentration and economic development. From one perspective, urban objects from the list to create various jobs for the people. Whereas, economic development in certain cities does not always reflect on the overall economic performance of the entire nation. Some of the drawbacks of urbanization are the emergence of slums and various types of pollution like air, water, etc

It’s additionally essential to consider city shapes, as they determine transportation opportunities. For instance, cities situated on islands and peninsulas frequently have irregular shapes, expanding the gap between the majorly needed facilities. This factor is particularly significant in developing nations where most of the citizens cannot afford personal transport.

Therefore, the economic influence of urban planning is unquestionable. Despite the fact that it doesn’t really change the overall economic situation in a nation, it certainly stimulates economic development in cities.


Author’s Bio 

Name – Raman Khandelwal

Location – Jaipur, Rajasthan, India

Designation – SEO ExecutiveRaman Khandelwal is an SEO executive and handles all the SEO related and Content Writing work. I work on behalf of Technosoftwares which provides WordPress Development Services and he also likes to play basketball in his free time.

Leave a Reply

Your email address will not be published. Required fields are marked *