Abundance and Economic diversity as a descriptor of cities'economic complexity

2026-01-27

AI Summary

This study investigates the spatial heterogeneity and structural transformation of urban economic complexity and resilience under rapid urbanization. Leveraging a decade of firm-level geospatial data from Mexico City, it pioneers an integration of economic complexity theory with spatial analysis by constructing a three-dimensional indicator system—firm abundance, diversity, and longevity (ADL). Through regression modeling, spatial autocorrelation analysis, time-series clustering, and fitting with power-law and logarithmic saturation models, the research uncovers distinct nonlinear dynamics within the city: central areas exhibit power-law growth, while peripheral zones follow logarithmic saturation trajectories. Notably, firm longevity significantly moderates the relationship between abundance and diversity in peri-urban transition zones. These findings offer novel empirical evidence for polycentric urban restructuring and provide a quantitative foundation for designing inclusive urban policies.

Technology Category

• Data Mining & Knowledge Management: Mining of Spatial, Temporal or Spatio-Temporal Data
• Game Theory and Economic Paradigms: Cooperative Game Theory
• Planning, Routing, and Scheduling: Optimization of Spatio-temporal Systems

Application Category

• Economics, Online Markets and Human Computation: Sustainability of Web economics
• Web Mining and Content Analysis: Models for Web evolution
• Graph Algorithms and Modeling for the Web: Algorithms and analysis for heterogeneous, signed, attributed, multi-relational, temporal, higher-order, and annotated Web-related graphs

Abstract

Intricate interactions among firms, institutions, and spatial structures shape urban economic systems. In this study, we propose a framework based on three structural dimensions -- abundance, diversity, and longevity (ADL) of economic units -- as proxies of urban economic complexity and resilience. Using a decade of georeferenced firm-level data from Mexico City, we analyze the relationships among ADL variables using regression, spatial correlation, and time-series clustering. Our results reveal nonlinear dynamics across urban space, with powerlaw behavior in central zones and logarithmic saturation in peripheral areas, suggesting differentiated growth regimes. Notably, firm longevity modulates the relationship between abundance and diversity, particularly in periurban transition zones. These spatial patterns point to an emerging polycentric restructuring within a traditionally monocentric metropolis. By integrating economic complexity theory with spatial analysis, our approach provides a scalable method to assess the adaptive capacity of urban economies. This has implications for understanding informality, designing inclusive urban policies, and navigating structural transitions in rapidly urbanizing regions.

Problem

• economic complexity
• urban systems
• spatial heterogeneity
• economic resilience
• urban restructuring

Innovation

• economic complexity
• urban resilience
• spatial analysis
• firm longevity
• polycentric restructuring