Abstract.Neighbouring towns in urban clusters of Canada exhibit similar levels of socio-economic development. However, when measured by different development indicators, inter-town development association differs in both nature and degree. In core areas, for instance, only population and housing variables exhibit a strong spatial association, while that of employment-related variables - average income, and unemployment rate - is weaker. This tendency reflects the fundamental difference between the two groups of variables. While population and housing variables are associated with the clustering of residents in socially homogenous areas, inter-town development similarity in respect to employment-related variables is weaker, apparently due to long-distance commuting. The article discusses the importance of urban clustering as a factor in regional development policies and programmes, and provides support for including cluster-related elements in a strategy to enhance urban growth in underdeveloped regions.
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