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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 pc growth across the EU12 using data for functionally definedcities - rather than administrative regions. We test hypotheses on the role of human capital,EU integration and fragmentation of urban government and explore spatial dependence andmechanisms of spatial interaction. Results are acceptable on standard econometric testswithout measures of spatial interaction but there is spatial dependence. If variables reflectingspatial adjustment are included, they are statistically significant and eliminate spatialdependence. Not only do the results now provide consistent estimates of parameters, theyalso support relevant theoretical insights and show national borders are still significantbarriers to economic adjustment. People in Europe are sticky so it is unreasonable to assumespatial disparities will disappear. Our findings also imply that cities in Europe form nationalrather than a single continental system.

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Bibliographic Info

Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0010.

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Date of creation: Nov 2008
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Handle: RePEc:cep:sercdp:0010

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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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Keywords: growth; cities; local public goods; spatial adjustment; local economic growth;

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Citations

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Cited by:
  1. GAIGNé, Carl & RIOU , Stéphane & THISSE , Jacques & ,, 2013. "How to make the metropolitan area work? Neither big government, nor laissez-faire," CORE Discussion Papers 2013065, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  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. 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.
  4. 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.
  5. Steve Gibbons & Max Nathan & Henry G. Overman, 2014. "Evaluating Spatial Policies," SERC Policy Papers 012, Spatial Economics Research Centre, LSE.
  6. 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.
  7. repec:wbk:wbpubs:15790 is not listed on IDEAS
  8. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and Cities: Evidence from the Post-communist World," WIFO Working Papers 397, WIFO.
  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. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and cities: evidence from the post-communist world," ERSA conference papers ersa11p288, European Regional Science Association.

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