Does urban concentration matter for changes in country economic performance?

Ganau, Roberto; Rodríguez‐Pose, Andrés

doi:10.1177/0042098021998927

Cited by 8 publications

(4 citation statements)

References 42 publications

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“…City size may, after all, have a negative impact on economic growth. Equally, further analysis suggests heterogeneity in the link between urban concentration and economic growth: higher urban concentration benefits economic growth in high‐income countries, but there is far less evidence of this in less‐developed and emerging countries (Frick & Rodríguez‐Pose, 2018a; Ganau & Rodríguez‐Pose, 2021).…”

Section: Revisiting Policies In Light Of Evidence: Do Large Cities Always Drive Growth?mentioning

confidence: 99%

Developing intermediate cities

Rodríguez‐Pose

Griffiths

2021

Regional Science Policy & Practice

Self Cite

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Intermediate cities have experienced economic dynamism in recent years, but, with the focus firmly on large metropoles and sprawling megacities, the development potential of intermediate cities has stayed out of the limelight. This paper upholds the relevance and potential of intermediate cities, arguing that they can play as important a roleif not a more important onethan the large metropoles that, until now, have been the focus of attention. Intermediate cities hold considerable advantages, in particular for poverty reduction and as more efficient ecosystems to live and work. Untapping the potential of intermediate cities requires, however, more territorially balanced, place-sensitive strategies.

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Section: Revisiting Policies In Light Of Evidence: Do Large Cities Always Drive Growth?mentioning

confidence: 99%

Developing intermediate cities

Rodríguez‐Pose

Griffiths

2021

Regional Science Policy & Practice

Self Cite

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“…(2020) suggesting that economies can benefit from larger urban agglomerations. Ganau and Rodríguez-Pose (2022) find a positive relationship with growth and urban concentration, with growth mainly driven by the core of the urban areas.…”

Section: Resultsmentioning

confidence: 78%

“…, 2016; Jedwab and Vollrath, 2015). Ganau and Rodrıguez-Pose (2022) also find a positive relationship with urban concentration and growth, but argue more focused labour market measures are required in high-income countries, while in lower-income countries, infrastructure is a key requirement in larger cities. Less often negative relationships between urban concentration and economic growth have been detected (Alvarado et al.…”

Section: Literature Reviewmentioning

confidence: 84%

The relationship between city size, decentralisation and economic growth

Clifford

Doran²,

Crowley³

et al. 2022

JES

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PurposeThis article examines the links between average city size, fiscal decentralisation, and national economic growth in 33 Organisation for Economic Co-operation and Development (OECD) countries.Design/methodology/approachThe data in this paper comprise an unbalanced panel dataset which contains economic growth indicators, average city size, fiscal decentralisation indicators and control variables in 33 OECD member countries from 1975 to 2015 in five-year intervals. Fixed-effects (FE) estimators are used for the analysis.FindingsThis research finds i) countries with larger weighted average city sizes have higher economic growth, ii) countries with greater fiscal decentralisation have higher economic growth, but iii) countries with larger weighted average city sizes with greater decentralisation have lower rates of economic growth.Originality/valueThe research highlights the importance of agglomerations and decentralised governance and management for economic growth. While the findings are consistent with previous evidence that larger city sizes and fiscal decentralisation are separately associated with higher rates of economic growth, the authors find countries which have larger cities and greater fiscal decentralisation experience lower rates of economic growth highlighting a need for caution on decentralisation agendas in such cases. The implications of this suggest policymakers should proceed with caution on decentralisation agendas in countries with large cities.

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“…While previous research has demonstrated that urbanization is a crucial factor in regional economic growth, the impact of urbanization on economic growth is ambiguous due to variations in sample periods, methodologies, and other factors that can impact the results [19]. Most scholars have recognized the importance of urbanization as a driver of sustainable economic growth [35][36][37]. Urbanization provides countries with advantages in terms of transaction costs, economies of scale, and internal specialization [31].…”

Section: The Nexus Between Urbanization and Regional Economic Growthmentioning

confidence: 99%

Do Internet Development and Urbanization Foster Regional Economic Growth: Evidence from China’s Yangtze River Economic Belt

Zhong

Liu

et al. 2023

Sustainability

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Internet development and urbanization are widely perceived to have a significant impact on the economy and sustainability in China. However, existing studies fail to consider their interaction patterns and directions with economic growth in China’s Yangtze River Economic Belt (YREB). This study applies a bootstrap panel Granger causality test to examine the causal relationships between Internet development, urbanization, and regional economic growth for the YREB‘s 11 provinces. The main findings are as follows: (1) Internet development, urbanization and regional economic growth exhibit cross-sectional dependence and province-specific heterogeneity in the YREB. (2) Granger causality from Internet development to economic growth exists in most provinces, while Granger causality from economic growth to Internet development and two-way Granger causality are only observed in economically developed provinces, such as Shanghai, Jiangsu, Zhejiang, and Chongqing. (3) Granger causality from urbanization to economic growth exists in nine provinces, except for Hubei and Guizhou. However, the reverse Granger causality is only confirmed in Jiangsu, Anhui, and Hubei. This suggests that urbanization significantly improves economic growth efficiency, but the effect of economic growth on urbanization is restricted by regional bias policies. Therefore, the local government should implement tailored economic policies and establish an interactive mechanism to help China leverage its potential for economic growth and sustainability.

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Does urban concentration matter for changes in country economic performance?

Cited by 8 publications

References 42 publications

Developing intermediate cities

Developing intermediate cities

The relationship between city size, decentralisation and economic growth

Do Internet Development and Urbanization Foster Regional Economic Growth: Evidence from China’s Yangtze River Economic Belt

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