Interactions, knowledge spillovers and growth of European cities: Do geography, institutions or international firm networks matter?

Interactions, spillovers de connaissance et croissance des villes européennes. Faut-il préférer la géographie, le climat institutionnel ou les réseaux de firmes multinationales

Catherine Baumont and Rachel Guillain ()

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Abstract: Knowledge spillovers within urban economies are also sources of spillovers between cities. We examine how knowledge spillovers influenced the economic growth of 82 European metropolises over the 1990-2005 period. We model knowledge spillovers between cities on the basis of five specific interaction patterns based on geography, networks of multinational firms in advanced services, institutional climate and two combinations of these factors. Spatial models are estimated to detail the effects of growth factors in terms of spillovers and externalities. We show that spillovers are local rather than global and that interactions among cities accelerate the convergence process based on gross value added while accelerating the divergence process due to knowledge allocations. The impacts of knowledge allocation, however, do not differ fundamentally with the interaction patterns: geography, the institutional environment and networks of multinational firms all enhance knowledge spillovers.

Keywords: SPILLOVERS; URBAN GROWTH; INSTITUTIONS; INTERNATIONAL FIRM NETWORKS; SPATIAL ECONOMETRICS; ÉCONOMÉTRIE SPATIALE; RESEAUX DES FIRMES MULTINATIONALES; CROISSANCE URBAINE (search for similar items in EconPapers)
Date: 2013
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Published in Région et Développement, 2013, 38, pp.161-207

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01081263

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