Skip to main content
Article thumbnail
Location of Repository

Urban growth drivers in a Europe of sticky people and implicit boundaries

By Stefano Magrini and Paul Cheshire


We investigate urban GDP pc growth across the EU12 using data for functionally defined cities - rather than administrative regions. We test hypotheses on the role of human capital, EU integration and fragmentation of urban government and explore spatial dependence and mechanisms of spatial interaction. Results are acceptable on standard econometric tests without measures of spatial interaction but there is spatial dependence. If variables reflecting spatial adjustment are included, they are statistically significant and eliminate spatial dependence. Not only do the results now provide consistent estimates of parameters, they also support relevant theoretical insights and show national borders are still significant barriers to economic adjustment. People in Europe are sticky so it is unreasonable to assume spatial disparities will disappear. Our findings also imply that cities in Europe form national rather than a single continental system

Topics: HC Economic History and Conditions
Publisher: Spatial Economics Research Centre (SERC), London School of Economics and Political Science
Year: 2008
OAI identifier:
Provided by: LSE Research Online

Suggested articles


  1. (1982). A model of labour-market interdependencies in the London region, doi
  2. (1956). A pure theory of local expenditures, doi
  3. (1998). Agglomeration and the location of innovative activity, doi
  4. (1999). An essay on fiscal federalism, doi
  5. (2004). Between development and social policies: the impact of European structural funds in Objective 1 regions’, doi
  6. (1991). Convergence across states and regions, doi
  7. (2002). Delocation and European integration: is European structural spending justified?, doi
  8. (1995). Economic growth in a cross-section of cities, doi
  9. (1995). Economic Growth, doi
  10. (2000). Endogenous processes in European regional growth: implications for convergence and policy, doi
  11. (1990). Endogenous technological change, doi
  12. (2007). Exploring the link between local and global knowledge spillovers, Working doi
  13. (2005). From sectoral to functional urban specialization, doi
  14. (1990). Government spending in a simple model of endogenous growth, doi
  15. (2004). Growth, development and innovation: a look backward and forward, doi
  16. (1969). Industrial location and economic potential in doi
  17. (1998). Modelling regional economic growth: the role of human capital and innovation,
  18. (2007). Moving to nice weather, doi
  19. (2005). News Release 47/2005,
  20. (2008). Office space supply restrictions in Britain: the political economy of market revenge, doi
  21. (1988). Peripheral Regions in a Community of Twelve Member States,
  22. (1988). Peripheral Regions in a Community of Twelve Member States, Office of Official Publications,
  23. (2007). Planning Cities for the Future: The Successes and doi
  24. (2006). Population growth in European cities: weather matters – but only nationally, doi
  25. (2000). Power couples: changes in the locational choice of the college educated, 1940-1990, doi
  26. (1991). Properties of tests for spatial dependence in linear regression models, doi
  27. (2004). Regional (di)convergence, in doi
  28. (2003). Specification searches in spatial econometrics: the relevance of Hendry’s methodology, doi
  29. (2000). Standards for defining metropolitan and micropolitan areas: notice. Federal Register, Volume 65,
  30. (1996). Territorial competition and the logic of collective (in)action, doi
  31. (1954). The market as a factor in the localisation of industry in the U.S.,
  32. (1999). The new empirics of economic growth, doi
  33. (1999). The new growth evidence, doi
  34. (1999). The Spatial Economy, doi
  35. (2005). Towards a common standard.
  36. (2005). Unemployment and urban labour markets, doi
  37. (1996). Urban Economics and Real Estate Markets, doi
  38. (1989). Urban Problems in Western Europe: an Economic Analysis, doi
  39. (1999). US regional income convergence: a spatial economic perspective, Regional Studies, doi
  40. (1982). Wages, rents, and the quality of life, doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.