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The distinctive determinants of European urban growth: Does one size fit all?

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  • Cheshire, Paul C.
  • Magrini, Stefano

Abstract

This paper investigates growth differences in the urban system of the EU12. Alternative dependent variables - growth in population and real GDP per capita - are analysed and instructive differences emerge. The US model which assumes perfect factor mobility does not seem well adapted to European conditions. There is evidence strongly suggesting that equilibrating flows between cities are highly constrained in the EU. Models in which growth of real GDP p.c. are the dependent variable perform well and make it possible to test significant hypotheses. Evidence is found which is supportive of 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. In addition 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 'fiscal federalism' viewing growth promotion as the production of a local public good. While international factor flows appear to be constrained as an adjustment mechanism the density of urbanisation in regions of the EU12 seems to produce a strong local 'growth shadow' effect consistent with commuting flows having an important role in spatial economic adjustment processes. Finally new evidence is found supporting the conclusion that integration shocks in the EU favour core areas but that this effect tends to fade with time.

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  • Cheshire, Paul C. & Magrini, Stefano, 2002. "The distinctive determinants of European urban growth: Does one size fit all?," ERSA conference papers ersa02p100, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa02p100
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    Cited by:

    1. Theodore Metaxas, 2008. "Place Marketing, Strategic Planning and Competitiveness: The Case of Malta," European Planning Studies, Taylor & Francis Journals, vol. 17(9), pages 1357-1378, March.
    2. Shiuh-Shen Chien & Ian Gordon, 2008. "Territorial Competition in China and the West," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 31-49.
    3. Paul Cheshire & Stefano Magrini, 2006. "Population growth in European cities: Weather matters - but only nationally," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 23-37.
    4. Riccardo regstdcenzi, 2009. "Undermining the Principle of Concentration? European Union Regional Policy and the Socio-economic Disadvantage of European Regions," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 111-133.
    5. Paul_Cheshire & Stefano_Magrini, 2004. "Population Growth in European Cities: weather matters – but only nationally," Urban/Regional 0410001, University Library of Munich, Germany.
    6. Vera Boronenko & Vladimirs Mensikovs & Olga Lavrinenko, 2014. "The impact of EU accession on the economic performance of the countries’ internal (NUTS 3) regions," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 32(2), pages 313-341.
    7. Metaxas, Theodore, 2010. "Planning, managing and implementing place/city marketing effectively: review and discussion of the last 25 years," MPRA Paper 41024, University Library of Munich, Germany, revised 2010.
    8. Crescenzi, Riccardo & Rodríguez-Pose, Andrés, 2008. "Infrastructure endowment and investment as determinants of regional growth in the European Union," LSE Research Online Documents on Economics 23323, London School of Economics and Political Science, LSE Library.
    9. Riccardo Crescenzi, 2006. "EU Development Policies and the Socio-Economic Disadvantage of European Regions," ERSA conference papers ersa06p552, European Regional Science Association.
    10. Riccardo Crescenzi, 2007. "Undermining the Principle of Concentration? Eu development policies and the Socio-Economic Disadvantage Of European Regions," Departmental Working Papers of Economics - University 'Roma Tre' 0073, Department of Economics - University Roma Tre.
    11. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.

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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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