Closing gaps on the urban fringe of Australian capital cities: an investment worth making

Abstract

This paper commences by demonstrating that Australia's capital cities follow a similar development profile; a large portion of all jobs are concentrated in the inner urban areas. As a result, the accessibility of jobs and services is poor in the outer urban areas. It then goes on to argue that by creating a more accessible and equitable distribution of jobs and services, significant productivity benefits would be conferred across Australian cities, primarily through agglomeration economies, human capital enhancements and transport-based savings. Speculative modelling is undertaken to estimate the likely scale of costs and benefits of partially closing the gaps between urban growth areas and their host metropolises. Interventions for improving the distribution and accessibility of jobs and services are discussed, including improved government service delivery on the urban fringe, promoting vibrant town centres and improving transport links across the metropolis.