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Urban growth drivers in a Europe of sticky people and implicit boundaries

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  • Paul Cheshire
  • Stefano Magrini

Abstract

We investigate urban GDP per capita growth across the EU12 using data for functionally defined cities—rather than administrative regions. We test hypotheses on the role of human capital, EU integration and fragmentation of urban government and explore spatial dependence and mechanisms of spatial interaction. Results are acceptable on standard econometric tests without measures of spatial interaction but there is spatial dependence. If variables reflecting spatial adjustment are included, they are statistically significant and eliminate spatial dependence. Not only do the results now provide consistent estimates of parameters, but they also support relevant theoretical insights and show national borders are still significant barriers to economic adjustment. People in Europe are sticky so it is unreasonable to assume spatial disparities will disappear. Our findings also imply that cities in Europe form national rather than a single continental system.

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Bibliographic Info

Article provided by Oxford University Press in its journal Journal of Economic Geography.

Volume (Year): 9 (2009)
Issue (Month): 1 (January)
Pages: 85-115

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Handle: RePEc:oup:jecgeo:v:9:y:2009:i:1:p:85-115

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Cited by:
  1. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2013. "How to make the metropolitan area work? Neither big government, nor laissez-faire," CEPR Discussion Papers 9499, C.E.P.R. Discussion Papers.
  2. Paulo Morais & Vera Miguéis & Ana Camanho, 2013. "Quality of Life Experienced by Human Capital: An Assessment of European Cities," Social Indicators Research, Springer, vol. 110(1), pages 187-206, January.
  3. Aurélie LALANNE (GREThA, CNRS, UMR 5113) & Guillaume POUYANNE ( GREThA, CNRS, UMR 5113), 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA 2012-11, Groupe de Recherche en Economie Théorique et Appliquée.
  4. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and Cities: Evidence from the Post-communist World," WIFO Working Papers 397, WIFO.
  5. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and cities: evidence from the post-communist world," ERSA conference papers ersa11p288, European Regional Science Association.
  6. Paul C. Cheshire and Stefano Magrini, 2009. "Urban Growth Drivers and Spatial Inequalities: Europe - a Case with Geographically Sticky People," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 1, London School of Economics / European Institute.
  7. repec:wbk:wbpubs:15790 is not listed on IDEAS
  8. Steve Gibbons & Max Nathan & Henry G. Overman, 2014. "Evaluating Spatial Policies," SERC Policy Papers 012, Spatial Economics Research Centre, LSE.
  9. ARGUELLES, Margarita & BENAVIDES, Carmen & MAYOR, Matias, 2011. "Regional Policy In The Eu Less Favoured Regions For The Period 2000-2006: An Assessment Of The Expenditure Allocation And Governance," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 11(1).
  10. Rafael Boix & Paolo Veneri, 2009. "Metropolitan Areas in Spain and Italy," IERMB Working Paper in economics 0901, Institut d'Estudis Regionals i Metropolitans de Barcelona.

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