# The inverted U-shaped effect of urban hotspots spatial compactness on urban economic growth

## TL;DR

This study reveals that the relationship between urban hotspots' spatial compactness and economic growth follows an inverted U-shape, indicating an optimal level of compactness for urban economic performance.

## Contribution

It introduces a novel analysis of urban hotspots' structural effects on economic growth using nighttime luminosity data and the Loubar method.

## Key findings

- Hotspot number scales sublinearly with population across regions.
- The impact of hotspot compactness on economic growth is inverted U-shaped.
- An optimal compactness coefficient exists for urban hotspots.

## Abstract

The compact city, as a sustainable concept, is intended to augment the efficiency of urban function. However, previous studies have concentrated more on morphology than on structure. The present study focuses on urban structural elements, i.e., urban hotspots consisting of high-density and high-intensity socioeconomic zones, and explores the economic performance associated with their spatial structure. We use nighttime luminosity (NTL) data and the Loubar method to identify and extract the hotspot and ultimately draw two conclusions. First, with population increasing, the hotspot number scales sublinearly with an exponent of approximately 0.50~0.55, regardless of the location in China, the EU or the US, while the intersect values are totally different, which is mainly due to different economic developmental level. Secondly, we demonstrate that the compactness of hotspots imposes an inverted U-shaped influence on economic growth, which implies that an optimal compactness coefficient does exist. These findings are helpful for urban planning.

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Source: https://tomesphere.com/paper/1908.05530