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The distinctive determinants of European urban growth: Does one size fit all?

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  • Cheshire, Paul C.

    ()

  • Magrini, Stefano

    ()

Abstract

This paper investigates growth differences in the urban system of the EU12. Alternative dependent variables - growth in population and real GDP per capita - are analysed and instructive differences emerge. The US model which assumes perfect factor mobility does not seem well adapted to European conditions. There is evidence strongly suggesting that equilibrating flows between cities are highly constrained in the EU. Models in which growth of real GDP p.c. are the dependent variable perform well and make it possible to test significant hypotheses. Evidence is found which is supportive of a spatial adaptation of the endogenous growth model with the relative size of the university sector having a highly significant role in explaining growth differences. In addition the analysis supports the conclusion that systems of urban governance are strongly related to growth. The variables are formulated in a way which tests hypotheses derived from 'fiscal federalism' viewing growth promotion as the production of a local public good. While international factor flows appear to be constrained as an adjustment mechanism the density of urbanisation in regions of the EU12 seems to produce a strong local 'growth shadow' effect consistent with commuting flows having an important role in spatial economic adjustment processes. Finally new evidence is found supporting the conclusion that integration shocks in the EU favour core areas but that this effect tends to fade with time.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p100.

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Date of creation: Aug 2002
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Handle: RePEc:wiw:wiwrsa:ersa02p100

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  1. Edward L. Glaeser & Jose A. Scheinkman & Andrei Shleifer, 1995. "Economic Growth in a Cross-Section of Cities," NBER Working Papers 5013, National Bureau of Economic Research, Inc.
  2. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
  3. Barro, R.J., 1988. "Government Spending In A Simple Model Of Endogenous Growth," RCER Working Papers 130, University of Rochester - Center for Economic Research (RCER).
  4. Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series 609, The World Bank.
  5. Jordan Rappaport, 1999. "Local Growth Empirics," CID Working Papers 23, Center for International Development at Harvard University.
  6. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
  7. Sala-I-Martin, X. & Barro, R.J., 1991. "Public Finance in Models of Economic Growth," Papers 640, Yale - Economic Growth Center.
  8. Rodriguez-Pose, Andres, 1998. "Dynamics of Regional Growth in Europe: Social and Political Factors," OUP Catalogue, Oxford University Press, number 9780198233831, September.
  9. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  10. Dora L. Costa & Matthew E. Kahn, 1999. "Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990," NBER Working Papers 7109, National Bureau of Economic Research, Inc.
  11. repec:fth:stanho:e-95-4 is not listed on IDEAS
  12. Levine, Ross & Zervos, Sara J, 1993. "What We Have Learned about Policy and Growth from Cross-Country Regressions?," American Economic Review, American Economic Association, vol. 83(2), pages 426-30, May.
  13. Blomquist, Glenn C & Berger, Mark C & Hoehn, John P, 1988. "New Estimates of Quality of Life in Urban Areas," American Economic Review, American Economic Association, vol. 78(1), pages 89-107, March.
  14. Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 774-806, August.
  15. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
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Cited by:
  1. Riccardo regstdcenzi, 2009. "Undermining the Principle of Concentration? European Union Regional Policy and the Socio-economic Disadvantage of European Regions," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 111-133.
  2. Paul Cheshire & Stefano Magrini, 2006. "Population growth in European cities: Weather matters - but only nationally," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 23-37.
  3. Paul_Cheshire & Stefano_Magrini, 2004. "Population Growth in European Cities: weather matters – but only nationally," Urban/Regional 0410001, EconWPA.
  4. Riccardo Crescenzi, 2006. "EU Development Policies and the Socio-Economic Disadvantage of European Regions," ERSA conference papers ersa06p552, European Regional Science Association.
  5. Metaxas, Theodore, 2010. "Planning, managing and implementing place/city marketing effectively: review and discussion of the last 25 years," MPRA Paper 41024, University Library of Munich, Germany, revised 2010.
  6. Riccardo Crescenzi, 2007. "Undermining the Principle of Concentration? Eu development policies and the Socio-Economic Disadvantage Of European Regions," Departmental Working Papers of Economics - University 'Roma Tre' 0073, Department of Economics - University Roma Tre.
  7. Crescenzi, Riccardo & Rodriguez-Pose, Andres, 2008. "Infrastructure endowment and investment as determinants of regional growth in the European Union," EIB Papers 8/2008, European Investment Bank, Economics Department.

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