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Globalisation: Countries, Cities and Multinationals

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  • Philip McCann

    () (University of Waikato NZ; University of Reading UK; University of Groningen, The Netherlands)

  • Zoltan J. Acs

    (George Mason University)

Abstract

In this paper we explore the relationship between the size of a country, the size of its cities, and the economic performance of the country. In order to do this we integrate three different literature, namely the literature on optimal country size, literature on historical processes of urbanisation and the performance of cities, and literature on the role of multinational firms in the global economy. Using an economic geography perspective, we demonstrate that the relationship between city-size and the prosperity of the nation state, to a much more complex set of relationships. In the modern era of globalisation the role of global companies within the city-region is critical, and city-regions in turn are seen to drive national economies. As such, the relationships between firms, cities and countries have been largely reversed, casting doubt on various institutional economic theories.

Suggested Citation

  • Philip McCann & Zoltan J. Acs, 2009. "Globalisation: Countries, Cities and Multinationals," Jena Economic Research Papers 2009-042, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2009-042
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    References listed on IDEAS

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    1. Ronald Findlay & Kevin H. O'Rourke, 2007. "Power and Plenty: Trade, War and the World Economy in the Second Millennium (Preface)," Trinity Economics Papers tep0107, Trinity College Dublin, Department of Economics.
    2. Scott, Allen J. (ed.), 2001. "Global City-Regions: Trends, Theory, Policy," OUP Catalogue, Oxford University Press, number 9780198297994.
    3. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    4. Zoltan Acs & Niels Bosma & Rolf Sternberg, 2008. "The Entrepreneurial Advantage of World Cities - Evidence from Global Entrepreneurship Monitor Data," Jena Economic Research Papers 2008-063, Friedrich-Schiller-University Jena.
    5. Ronald Findlay & Kevin H. O'Rourke, 2007. "Introduction to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters,in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium Princeton University Press.
    6. Ronald Findlay & Kevin H. O'Rourke, 2007. "Preface to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters,in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium Princeton University Press.
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    Citations

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    Cited by:

    1. Jang P. Thia, 2016. "Trade and Urbanisation," The World Economy, Wiley Blackwell, vol. 39(6), pages 853-872, June.
    2. Robert Musil, 2014. "European Global Cities in the Recent Economic Crisis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(4), pages 492-503, September.
    3. Lewis Dijkstra & Enrique Garcilazo & Philip McCann, 2013. "The Economic Performance of European Cities and City Regions: Myths and Realities," European Planning Studies, Taylor & Francis Journals, vol. 21(3), pages 334-354, March.
    4. ., 2014. "Urban economic performance," Chapters,in: Urban Economics and Urban Policy, chapter 2, pages 11-53 Edward Elgar Publishing.
    5. Crescenzi, Riccardo & Gagliardi, Luisa & Iammarino, Simona, 2015. "Foreign multinationals and domestic innovation: Intra-industry effects and firm heterogeneity," Research Policy, Elsevier, vol. 44(3), pages 596-609.
    6. ., 2014. "Introduction," Chapters,in: Urban Economics and Urban Policy, chapter 1, pages 1-8 Edward Elgar Publishing.
    7. Prause Gunnar, 2014. "Smart Specialization and EU Eastern Innovation Cooperation: A Conceptual Approach," Baltic Journal of European Studies, De Gruyter Open, vol. 4(1), pages 1-17, June.
    8. OGREAN Claudia & HERCIU Mihaela, 2016. "Some Insights On The Changing Architecture Of The World’S Top 100 Multinationals," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(3), pages 90-106, December.
    9. Philip McCann, 2009. "Economic geography, globalisation and New Zealand's productivity paradox," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(3), pages 279-314.
    10. Susanne A. Frick & Andres Rodriguez-Pose, 2017. "Big or small cities? On city size and economic growth," Papers in Evolutionary Economic Geography (PEEG) 1725, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.
    11. Balázs Páger & Éva Komlósi, 2015. "Agglomeration effects on countries' competitiveness and entrepreneurial performance," ERSA conference papers ersa15p503, European Regional Science Association.
    12. Mariasole Bann√ö & Diego Giuliani & Enrico Zaninotto, 2014. "Going abroad on regional shoulders: The role of spillovers on the composition of regional exports," DEM Discussion Papers 2014/06, Department of Economics and Management.
    13. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2009. "Economic Geography Within And Between European Nations: The Role Of Market Potential And Density Across Space And Time," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 777-800.
    14. Chidlow, Agnieszka & Holmström-Lind, Christine & Holm, Ulf & Tallman, Steve, 2015. "Do I stay or do I go? Sub-national drivers for post-entry subsidiary development," International Business Review, Elsevier, vol. 24(2), pages 266-275.
    15. Martijn J. Burger & Frank G. Oort, 2014. "International Handbook of Globalization and World Cities , edited by Ben Derudder , Michael Hoyler , Peter J. Taylor , and Frank Witlox . 2012 . Cheltenham, U.K. and Northampton, Massachusetts : Edwar," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 348-351, March.
    16. Sergio Mariotti & Lucia Piscitello & Stefano Elia, 2014. "Local Externalities and Ownership Choices in Foreign Acquisitions by Multinational Enterprises," Economic Geography, Clark University, vol. 90(2), pages 187-211, April.
    17. Florin Teodor Boldeanu & Ileana Tache, 2016. "A Regional Approach To The Metropolitan Economic Growth: Evidence From The European Union," Journal of Smart Economic Growth, , vol. 1(1), pages 29-72, August.
    18. Ugo Fratesi, 2012. "A globalization-based taxonomy of European regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(1), pages 1-23, March.
    19. Roberto Camagni & Roberta Capello & Andrea Caragliu, 2013. "Una o infinite dimensioni urbane ottime? Alla ricerca di una dimensione di equilibrio," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2013(3), pages 53-88.
    20. Les Oxley & Shangqin Hong & Philip McCann, 2013. "Why Size Maters: Investigating the Drivers of Innovation and Economic Performance in New Zealand using the Business Operation Survey," Working Papers in Economics 13/13, University of Waikato.
    21. Renato Redondi & Mariasole Bannò & Marco Mutinelli, 2011. "Air Connectivity and Foreign Direct Investments The economic effects of the introduction of new routes," ERSA conference papers ersa11p249, European Regional Science Association.
    22. Evert Meijers & Martijn Burger & Martijn J. Burger & Evert J. Meijers, 2016. "Agglomerations and the rise of urban network externalities," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 5-15, March.

    More about this item

    Keywords

    scale; cities; countries; multinational firms; globalisation;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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