Big cities in developing countries often have streets or quarters that specialize in selling a particular type of good like: books, musical instruments; or giving a specialized service like: haircuts, selling coffee. A prominent example would be the capitals like Hanoi or Bangkok.
This almost never happens in cities in developed countries. Barcelona, Spain for example has its services, shops and even supermarkets distributed uniformly along its blocks.
- How to explain it in simple terms?
- Is there any economic model that could effectively describe and explain the phenomenon?