Page 74 - Azerbaijan State University of Economics

36. Rasul Balaev, Matlab Ali Zadeh, Sevda Haji Zadeh: Capabilities of Urbanizosiya
37. Processes Resilience in the Digital Environment

“To the extent that externalities, such as pollution and congestion, are not assessed in
cities, conurbations will be too large, but not by much. Public concerns about the prices
of congested roads, as well as about water supply and investment in health care to
reduce the likelihood of an epidemic, are well-founded. From this point of view,
preoccupation with urban slums and poor-quality housing, which in themselves do not
create any external effects, is less important." [Urbanization and Growth. Commission
on Growth and Development (2009). Michael Spence Patricia Clarke Annez Robert M.
Buckley Editors. p.128].

Indeed, the fact that the environmental attitude factor is always at the forefront in the
mentioned effects can lead to a one-sided and even non-productive approach to the
processes of the formation of megacities. It is inadmissible to consider the role of
economic expediency factor in the process of assessing the development of the city
at the necessary level, regardless of whether it is positive or negative in terms of
sustainable development. In the digital environment, this issue is more urgent.

To assess the economic and general expediency of the figure, we think it is possible
to use the following indicators: agglomeration effect; minimization of displacement
as a special case, as well as financing effects; allocation effect.

Our research gives reason to say that many changes in the geography of economic
activity in the intensive urban environment can be evaluated in terms of agglomeration
effect [Rasul A. Balayev (2007), p.38]. As is known, the agglomeration effect is
expressed as a complex factor of location, in which the associated and compact
placement of concomitant objects is effective, without always isolated and scattered
location. At the same time, they believe that Agglomeration effects are considered to
attenuate with distance when a decreasing impact is urbanized the further away the rings
are from the location” [Behrens, Kristian and Robert-Nicoud, Frederic L. (2014). CEPR
Discussion Paper No. DP10184].

The main factor contributing to the economic expediency of urbanization and digitization
is the possibility of saving resources and increasing their efficiency. Urbanization, despite
all its contradictions, is a thrifty variant of the organization of the regional environment.
At the same time, we should not forget that the number of economic centers is
significantly dependent on the conditions in which the urbanization processes begin. From
this point of view, the higher economic activity in and around the capital, although it is not
always desirable in terms of sustainable development, is justified in practice. The South
Korean experience deserves attention from this point of view.

“Two key elements contribute to the meteoric rise of Seoul as the primary hub of
business and urbanization in South Korea. Firstly, South Korean urbanization was
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