Arrested Agglomeration: The Spilling Out of Singapores Economic Activities into the Surrounding Sub-Region

Abstract

If cities have the ability to reach across borders to develop functional city regions, then the process of transborderization across subregional spaces depends on a well-functioning governance structure and leverage on potential agglomeration economies. The case of Singapore shows how thorny these processes are. Statistics show

rapid growth in the sub-region as a result of inter-state cooperation. This is supported by the experiences of four case companies in the transborder region. However, taking a regional political economy perspective shows that inter-state cooperation is susceptible to the ebbs and flows of strategic interests, leadership changes, and popular protests without strong associations and rules to govern behavior. Agglomeration economies work well within national boundaries; however, they become problematic when economic activities stretch across a sub-region that not only has different factor endowments but also experiences market-driven developments that are constrained by political boundaries.