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Urban Economic Growth in Europe: Testing Theory and Policy Prescriptions

Author

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  • Paul Cheshire

    (Department of Geography, The London School of Economics and Political Science, Houghton Street, London WC2A 2AE, UK, p.cheshire@lse.ac.uk)

  • G. Carbonaro

    (European Investment Bank (EIB/BEI), Luxembourg)

Abstract

A quite robust model of differential growth rates of per capita income in the major functional urban regions of the European Union is presented and tested for the 1980s. The results underline the important role of purely spatial economic processes in differential regional growth and suggest that the pattern of European urbanisation tends itself to generate systematic divergence of mean per capita incomes between neighbouring city-regions, even though the mechanism generating this divergence of mean incomes is not inconsistent with converging incomes for comparable individuals. In addition, the evidence is supportive of a spatial adaptation of Romer's endogenous technical progress model. The model is formulated in a way which tests policy concerns. In general, the results are supportive of European regional policy although the systematic spatial effects of European integration seem to be fading and extending outwards to near-peripheral urban regions.

Suggested Citation

  • Paul Cheshire & G. Carbonaro, 1996. "Urban Economic Growth in Europe: Testing Theory and Policy Prescriptions," Urban Studies, Urban Studies Journal Limited, vol. 33(7), pages 1111-1128, August.
  • Handle: RePEc:sae:urbstu:v:33:y:1996:i:7:p:1111-1128
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    Cited by:

    1. 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.
    2. Seyit, Kose & Moomaw, Ronald, 2002. "Knowledge spillovers and regional growth in Europe," ERSA conference papers ersa02p373, European Regional Science Association.
    3. Guilherme Mendes Resende & Tulio A. Cravo, 2014. "What about regions in regional science? A convergence exercise using different geographic scales of European Union," Economics Bulletin, AccessEcon, vol. 34(3), pages 1381-1395.
    4. Andres RodrIguez-Pose & Ugo Fratesi†, 2004. "Between Development and Social Policies: The Impact of European Structural Funds in Objective 1 Regions," Regional Studies, Taylor & Francis Journals, vol. 38(1), pages 97-113.
    5. Young-Chool Choi & Oe-Chool Choi, 1998. "Determinants affecting privatisation of local government services in Britain," ERSA conference papers ersa98p16, European Regional Science Association.
    6. Kurt Geppert & Martin Gornig & Andreas Stephan, 2003. "Productivity Differences in the European Union: National, Regional and Spatial Effects," Discussion Papers of DIW Berlin 383, DIW Berlin, German Institute for Economic Research.
    7. Eckey, Hans-Friedrich & Türck, Matthias, 2007. "Convergence of EU-Regions. A Literature Report," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 10, pages 5-32.
    8. Stefano Magrini, 1998. "The determinants of regional growth: An empirical analysis," ERSA conference papers ersa98p310, European Regional Science Association.
    9. Henry G. Overman & Diego Puga, 2002. "Unemployment clusters across Europe's regions and countries," Economic Policy, CEPR;CES;MSH, vol. 17(34), pages 115-148, April.
    10. Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 257-281, March.
    11. Graham Robert Crampton, 1998. "Urban unemployment in the EU, tertiary sector employment growth and urban size," ERSA conference papers ersa98p52, European Regional Science Association.
    12. Ferhan Gezici & Berna Keskin, 2005. "The Interaction between Interregional Disparities and Immigration in Turkey," ERSA conference papers ersa05p132, European Regional Science Association.
    13. Kurt Geppert & Andreas Stephan, 2008. "Regional disparities in the European Union: Convergence and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 193-217, June.
    14. Guilherme Resende & Tulio Cravo, 2013. "What about regions in regional science? An exercise of convergence using different geographic scales of European Union," ERSA conference papers ersa13p772, European Regional Science Association.
    15. Ulf Rosner & Joachim Weimann, 2004. "Die ökonomischen Effekte der Hochschulausgaben des Landes Sachsen-Anhalt – Fiskalische, Humankapital- und Kapazitätseffekte der Hochschulen in Magdeburg (Teil 2)," Urban/Regional 0402001, University Library of Munich, Germany.
    16. Delgado García, Juan Bautista & De Quevedo Puente, Esther, 2016. "The complex link of city reputation and city performance. Results for fsQCA analysis," Journal of Business Research, Elsevier, vol. 69(8), pages 2830-2839.
    17. Eckey, Hans-Friedrich & Türck, Matthias, 2005. "Convergence of EU-regions: A literature report," Volkswirtschaftliche Diskussionsbeiträge 80, University of Kassel, Faculty of Economics and Management.
    18. John S. L. McCombie & Mark Roberts, 2007. "Returns To Scale And Regional Growth: The Static-Dynamic Verdoorn Law Paradox Revisited," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 179-208, May.
    19. Mark Roberts & Mark Setterfield, 2010. "Endogenous Regional Growth: A Critical Survey," Chapters,in: Handbook of Alternative Theories of Economic Growth, chapter 21 Edward Elgar Publishing.
    20. Benito , Juan Miguel & Ezcurra, Roberto, 2004. "Spatial disparities in the European Union: national and sectoral elements," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 4, pages 75-98.
    21. Bode, Eckhardt, 1999. "Localized knowledge spillovers and regional employment growth: evidence from Germany," Kiel Working Papers 938, Kiel Institute for the World Economy (IfW).
    22. José María Mella Márquez & Coro Chasco Yrigoyen, 2004. "Urban growth and territorial dynamics in Spain (1985-2001): A spatial econometrics analysis," Urban/Regional 0411003, University Library of Munich, Germany.
    23. Peter Mayerhofer, 2005. "Structural Preconditions of City Competitiveness. Some Empirical Results for European Cities," WIFO Working Papers 260, WIFO.
    24. repec:wfo:wstudy:42430 is not listed on IDEAS
    25. William F. Lever, 2010. "The Knowledge Base, Research and Development and Regional Economic Policy: The US and UK Experience," Chapters,in: Economic Strategies for Mature Industrial Economies, chapter 4 Edward Elgar Publishing.

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