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Urban Economic Growth in Europe Between 2001 and 2008 – Gravitation or Dispersion?

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  • Uwe Neumann

    ()

  • Rüdiger Budde
  • Christoph Ehlert

Abstract

This paper examines what regional characteristics drove urban economic growth in Europe during the past decade. Possible impacts on the new member states in Central Europe due to expansion of the European Union are accounted for by comparison between two periods, before and after 2004. With a focus on cities, a more precise view of Europe-wide regional disparities and their development can be provided than by research based on larger territories, which prevails in the empirical literature on regional convergence. After 2004, economic growth accelerated considerably in the least developed peripheral regions and in the wealthier capital cities of Central European countries. In the medium term, however, no equalisation of disparities within Europe can be exptected. The analysis suggests that economic prosperity in Central Europe and in other parts of Europe depends on the performance of urban “growth poles” favouring regional innovation. This implies that it is a task of regional policy to support provision of a high-quality infrastructure for education and innovation in cities and to encourage utilisation of these facilities within wider regions.

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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0384.

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Length: 24 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:rwi:repape:0384

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Keywords: Spatial economics; urban economics; EU enlargement;

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  1. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796 Elsevier.
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  5. Bernard Fingleton & Manfred Fischer, 2010. "Neoclassical theory versus new economic geography: competing explanations of cross-regional variation in economic development," The Annals of Regional Science, Springer, vol. 44(3), pages 467-491, June.
  6. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  7. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
  8. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
  9. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
  10. Stefano Magrini & Margherita Gerolimetto & Hasan Engin Duran, 2011. "Distortions in Cross-Sectional Convergence Analysis when the Aggregate Business Cycle is Incomplete," Working Papers 2011_07, Department of Economics, University of Venice "Ca' Foscari".
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