European Urban Growth - throwing some Economic Light into the Black Box
Paul Cheshire () and
Stefano Magrini ()
ERSA conference papers from European Regional Science Association
This paper investigates growth differences in the urban system of the EU12 between the means of 1978/80 and 1992/94. Models in which growth of real GDP p.c. is the dependent variable perform well and make it possible to test significant hypotheses. The analysis supports the conclusion that systems of urban governance are strongly related to growth. The variables are formulated in a way which tests hypotheses derived from Â‘fiscal federalismÂ’ viewing growth promotion as the production of a local public good. Evidence is also found supporting a spatial adaptation of the endogenous growth model with the relative size of the university sector having a highly significant role in explaining growth differences. Careful testing for spatial dependence reveals that national borders are significant barriers to adjustment but including explicit spatial effects resolves the specification problems. Density of urbanisation in some parts of the EU12 produces a local Â‘growth shadowÂ’ effect consistent with dynamic agglomeration economies and with commuting flows having an important role in spatial economic adjustment processes where cities are densely packed. In addition, evidence is found supporting the conclusion that integration shocks in the EU favour core areas but that this effect tends to fade with time.
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa05p13
Access Statistics for this paper
More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().