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City Size and Economic Performance: Is Bigger Better, Small More Beautiful or Middling Marvellous?

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  • Michael Parkinson
  • Richard Meegan
  • Jay Karecha

Abstract

This article discusses the contribution that second-tier cities can and do make to the economic performance of national economies across Europe. It reviews the competing theories about size, investment and economic performance. It presents a range of evidence about the performance of over 150 European capital and second-tier cities in 31 countries. It identifies some key policy messages for local national and European policy-makers. It presents evidence that decentralizing responsibilities, powers and resources, spreading investment and encouraging high performance in a range of cities rather than concentrating on the capital city produces national benefits. It argues that in a period of austerity national governments should resist pressures to concentrate investment in capital cities and invest more in second-tier cities when there is evidence that: (i) the gap with capitals is large and growing (ii) the business infrastructure of second-tier cities is weak because of national underinvestment and (iii) there is clear evidence about the negative externalities of capital city growth. It argues that the issues have slipped down the European Commission's agenda and it should do more to ensure its strategies help realize the economic potential of second-tier cities in future .

Suggested Citation

  • Michael Parkinson & Richard Meegan & Jay Karecha, 2015. "City Size and Economic Performance: Is Bigger Better, Small More Beautiful or Middling Marvellous?," European Planning Studies, Taylor & Francis Journals, vol. 23(6), pages 1054-1068, June.
  • Handle: RePEc:taf:eurpls:v:23:y:2015:i:6:p:1054-1068
    DOI: 10.1080/09654313.2014.904998
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    Cited by:

    1. O’Leary Eoin, 2018. "Planning Ireland to 2040: How to address our economic development policy weaknesses," Administration, Sciendo, vol. 66(1), pages 89-105, February.
    2. Rafa Madariaga & Joan Carles Martori & Ramon Oller, 2019. "Wage income inequality in Catalonian second-rank cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 285-304, April.
    3. Roberta Capello & Andrea Caragliu, 2021. "Regional growth and disparities in a post‐COVID Europe: A new normality scenario," Journal of Regional Science, Wiley Blackwell, vol. 61(4), pages 710-727, September.
    4. Alessandra Faggian & Roberta Gemmiti & Timothy Jaquet & Isabella Santini, 2018. "Regional economic resilience: the experience of the Italian local labor systems," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 393-410, March.
    5. Davide Burgalassi & Sabrina Iommi & Donatella Marinari, 2016. "Dimensione e offerta funzionale nella crescita urbana. Alcune evidenze nel periodo 2001-2011," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2016(2), pages 37-60.
    6. Yu, Binbin & Zhou, Xinru, 2023. "Urban administrative hierarchy and urban land use efficiency: Evidence from Chinese cities," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 178-195.
    7. Stephen C. Newbold & David Finnoff & Linda Thunström & Madison Ashworth & Jason F. Shogren, 2020. "Effects of Physical Distancing to Control COVID-19 on Public Health, the Economy, and the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 705-729, August.
    8. Roberta Capello & Andrea Caragliu, 2021. "Merging macroeconomic and territorial determinants of regional growth: the MASST4 model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 19-56, February.
    9. McCafferty Des, 2019. "Fifty years of urbanisation in Ireland: Structural and spatial evolution of the urban hierarchy since Buchanan," Administration, Sciendo, vol. 67(3), pages 65-89, August.
    10. Koen van der Gaast & Eveline van Leeuwen & Sigrid Wertheim-Heck, 2020. "City-Region Food Systems and Second Tier Cities: From Garden Cities to Garden Regions," Sustainability, MDPI, vol. 12(6), pages 1-14, March.
    11. Madeleine Wagner & Anna Growe, 2023. "Medium-Sized Towns in the Knowledge Economy—Towards a Systematic Classification," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    12. Levy, Deborah & Hills, Raewyn & Perkins, Harvey C. & Mackay, Michael & Campbell, Malcolm & Johnston, Karen, 2021. "Local benevolent property development entrepreneurs in small town regeneration," Land Use Policy, Elsevier, vol. 108(C).
    13. Rodrigo V. Cardoso & Evert J. Meijers, 2016. "Contrasts between first-tier and second-tier cities in Europe: a functional perspective," European Planning Studies, Taylor & Francis Journals, vol. 24(5), pages 996-1015, May.

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