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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. Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(4), pages 774-806, August.
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  4. Jordan Rappaport, 1999. "Local Growth Empirics," CID Working Papers, Center for International Development at Harvard University 23, Center for International Development at Harvard University.
  5. 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.
  6. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(5), pages S103-26, October.
  7. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  8. Rodriguez-Pose, Andres, 1998. "Dynamics of Regional Growth in Europe: Social and Political Factors," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198233831, October.
  9. 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, American Economic Association, vol. 78(1), pages 89-107, March.
  10. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 37(3), pages 1120-1149, September.
  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, American Economic Association, vol. 83(2), pages 426-30, May.
  13. Dora L. Costa & Matthew E. Kahn, 2000. "Power Couples: Changes In The Locational Choice Of The College Educated, 1940-1990," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 115(4), pages 1287-1315, November.
  14. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, American Economic Association, vol. 86(3), pages 630-40, June.
  15. Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series, The World Bank 609, The World Bank.
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Cited by:
  1. Paul Cheshire & Stefano Magrini, 2006. "Population growth in European cities: Weather matters - but only nationally," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 40(1), pages 23-37.
  2. Riccardo Crescenzi, 2006. "EU Development Policies and the Socio-Economic Disadvantage of European Regions," ERSA conference papers, European Regional Science Association ersa06p552, European Regional Science Association.
  3. Riccardo Crescenzi, 2009. "Undermining the principle of concentration?: European Union regional policy and the socio-economic disadvantage of European regions," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 23317, London School of Economics and Political Science, LSE Library.
  4. 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.
  5. Paul_Cheshire & Stefano_Magrini, 2004. "Population Growth in European Cities: weather matters – but only nationally," Urban/Regional, EconWPA 0410001, EconWPA.
  6. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2008. "Infrastructure endowment and investment as determinants of regional growth in the European Union," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 23323, London School of Economics and Political Science, LSE Library.
  7. 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', Department of Economics - University Roma Tre 0073, Department of Economics - University Roma Tre.

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