Editing Jane Jacobs (section)

=== ''Cities and the Wealth of Nations'' ===
''[[Cities and the Wealth of Nations]]'' (1984) attempts to do for economics what ''[[The Death and Life of Great American Cities]]'' did for modern urban planning, although it has not received the same critical attention. Beginning with a concise treatment of classical economics, this book challenges one of the fundamental assumptions of the greatest economists. Classical (and Neo-classical) economists consider the nation-state to be the main player in [[macroeconomics]]. Jacobs argues that it is not the nation-state, rather it is the city that is the true player in this worldwide game. She restates the idea of import replacement from her earlier book ''[[The Economy of Cities]]'', while speculating on the further ramifications of considering the city first and the nation second, or not at all.

'''A spectrum of economic regions'''

Along with the previous books focused on economics, Jacobs proposes an array of types of regional economies (stylized facts) which can help to understand their different challenges, and potential for development. One can start at the bottom end of the spectrum with the ''''backward' region''', which are economies who have lost their competitive advantages and are losing population or becoming dependent on ''largesse'' transfers from wealthier areas. Next are the ''''supply regions'''', which are usually known as natural resource extraction towns, and may be very wealthy during their heyday, but often suffer a decline into backwardness if the resource has run-out or has been substituted on outside markets. Similar to this is the ''''transplant region'''', a fundamental aspect of Jacobs economic theory. Transplant economies are usually manufacturing plants who have been moved from the location where the product was invented. The reason for the transplant is to save land, labour, fiscal, and transportation costs. Transplant regions are usually found along main transportation routes, where there is a large labour pool of available labour. Backward regions, Supply regions, and Transplant regions make up the most vulnerable types of economies to outside shocks and competition from low-cost production zones.
The Jacobs spectrum of regions also includes types of cities which rely on classical principles of central-location. Jacobs discusses ''''Entrepôt cities'''', which are economies based on the accumulation and warehousing of export goods, usually at a maritime port location. Next are ''''Hub cities'''', or regional capitals, which are central locations for private markets and public services in a given geography. 
Finally, Jacobs presents the qualities of growing metropolitan areas. Jacobs defines the metropolis as a city that grows beyond its political borders. She terms the core city as the ''''Import-Replacing'''' city. She terms the suburban sprawl of the metropolis as the ''''City-Region''''. Economic literature sometimes uses the term ''Jacobs agglomeration'' for these growing and innovative cities. CA Ramsay has proposed the term Forward Cities, as an echo to the opposing principle of 'Backward' economies.<ref>[https://www.barakabooks.com/catalogue/cities-matter/ ''Cities Matter, A Montrealer's Ode to Jane Jacobs, Economist'']</ref>

According to Jacobs, economies are constantly evolving and may move in and out of any of these categories. However, for an export-based economy such as a supply region, or a transplant town, to develop into a Forward city, the economy must engage in what she terms new-work. This implies a diversification of the economy. Jacobs strongly encourages breakaway entrepreneurship and local investment capital to do this. The modus operandi may be in import-replacing, in world-first innovation, or the adoption of production which is new to the community. Jacobs also insists on the benefits of having a city-currency, which acts as a positive feedback mechanism, to help drive local innovation and import-replacement. It also protects from outside demand shocks.