Economics at your fingertips  

Raising Urban Productivity or Attracting People? Different Causes, Different Consequences

Stefano Magrini () and Paul Cheshire ()

No 2006_24, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper investigates growth differences in the urban system of the EU12 over the last decades of the 20th Century. Models in which growth of real GDP p.c. and rates of population growth are the dependent variables are compared. This suggests that it makes sense to model GDP growth in a European context. The analysis supports the conclusion that systems of urban governance are significantly related to economic growth, as is the distribution of highly skilled human capital and R&D activity. In addition, evidence is found supporting the conclusion that integration shocks in the EU favour core areas but when all else is controlled for peripheral regions experienced a systematic positive growth differential. Careful testing for spatial dependence reveals that national borders are significant barriers to adjustment but we can resolve such problems by including a set of variables designed to reflect spatial economic adjustment mechanisms where cities are densely packed so their economies interact. Models of population growth show some similar results but interesting and revealing differences. Strong evidence is found that there are substantial national border effects impeding the emergence of a full spatial equilibrium across the EU�s urban system. Better climate is the single most significant variable but only when expressed relative to the national (not EU) mean. As with economic growth, there are significant national border effects in patterns of spatial dependence. Concentrations of human capital and R&D, however are if anything negatively associated with attracting population � a finding which parallels the finding that a better climate relative to the national mean is associated with slower rather than faster growth of real GDP per capita.

Keywords: growth; cities; local public goods; human capital; convergence; territorial competition (search for similar items in EconPapers)
JEL-codes: H41 H73 O18 R11 R50 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... re_Magrini_24_06.pdf First version, 2006 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from Department of Economics, University of Venice "Ca' Foscari" Contact information at EDIRC.
Bibliographic data for series maintained by Geraldine Ludbrook ().

Page updated 2022-01-23
Handle: RePEc:ven:wpaper:2006_24