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Governance and the city : an empirical exploration into global determinants of urban performance

Author

Listed:
  • Kaufmann, Daniel
  • Leautier, Frannie
  • Mastruzzi, Massimo

Abstract

The authors contribute to the field of urban governance and globalization through an empirically-based exploration of determinants of the performance of cities. They construct a preliminary worldwide database for cities, containing variables and indicators of globalization (at the country and city level), city governance, city performance (access and quality of infrastructure service delivery), as well as other relevant city characteristics. This city database, encompassing hundreds of cities worldwide, integrates existing data with new data gathered for this research. The findings suggest that good governance and globalization (at both the country and city level) do matter for city-level performance in terms of access and quality of delivery of infrastructure services. The authors also find that globalization and good city governance are significantly related with each other. Furthermore, the evidence suggests that there are complex interactions between technology choices, governance, and city performance, as well as evidence of a nonlinear (U-shaped) relationship between city size and performance, challenging the view that very large cities necessarily exhibit lower performance and pointing instead to potential agglomeration economies. The framework also suggests a way of bridging two seemingly competing strands of the literature, namely viewing the city as a place or as an outcome. The authors conclude by pointing to the need for expanding the database and the econometric framework, and suggest research directions and policy implications emerging from this initial investigation on governance and the city.

Suggested Citation

  • Kaufmann, Daniel & Leautier, Frannie & Mastruzzi, Massimo, 2005. "Governance and the city : an empirical exploration into global determinants of urban performance," Policy Research Working Paper Series 3712, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3712
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    References listed on IDEAS

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    1. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    2. Kaufmann, Daniel & Kraay, Aart, 2002. "Growth without governance," LSE Research Online Documents on Economics 123226, London School of Economics and Political Science, LSE Library.
    3. De Long, J Bradford & Shleifer, Andrei, 1993. "Princes and Merchants: European City Growth before the Industrial Revolution," Journal of Law and Economics, University of Chicago Press, vol. 36(2), pages 671-702, October.
    4. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    5. Daniel Kaufmann & Aart Kraay, 2002. "Growth without Governance," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2002), pages 169-230, August.
    6. John Friedmann, 1986. "The World City Hypothesis," Development and Change, International Institute of Social Studies, vol. 17(1), pages 69-83, January.
    7. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1231-1294.
    8. Daniel Kaufmann & Massimo Mastruzzi & Diego Zavaleta, 2003. "Sustained Macroeconomic Reforms, Tepid Growth: A Governance Puzzle in Bolivia?," Development and Comp Systems 0308003, University Library of Munich, Germany.
    9. Marcus Doel & Phil Hubbard, 2002. "Taking world cities literally: Marketing the city in a global space of flows," City, Taylor & Francis Journals, vol. 6(3), pages 351-368, November.
    10. Anas, Alex & Kyu Sik Lee, 1996. "The benefits of alternative power tariffs for Nigeria and Indonesia," Policy Research Working Paper Series 1606, The World Bank.
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    Cited by:

    1. Richard M. Bird, 2004. "Getting it Right: Financing Urban Development in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0435, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Langbein, Laura & Knack, Stephen, 2008. "The worldwide governance indicators and tautology : causally related separable concepts, indicators of a common cause, or both ?," Policy Research Working Paper Series 4669, The World Bank.
    3. Delgado García, Juan Bautista & De Quevedo Puente, Esther, 2016. "The complex link of city reputation and city performance. Results for fsQCA analysis," Journal of Business Research, Elsevier, vol. 69(8), pages 2830-2839.
    4. Janice Morphet, 2017. "Rescaling the suburban: New directions in the relationship between governance and infrastructure," Local Economy, London South Bank University, vol. 32(8), pages 803-817, December.

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    More about this item

    Keywords

    City Development Strategies; Governance Indicators; Municipal Financial Management; ICT Policy and Strategies; National Governance;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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