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Average city size and economic growth

Frick, Susanne A. and Rodríguez-Pose, Andrés (2016) Average city size and economic growth. Cambridge Journal of Regions, Economy and Society, 9 (2). pp. 301-318. ISSN 1752-1386

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Identification Number: 10.1093/cjres/rsw013

Abstract

This paper examines the link between average city size and aggregate economic growth in a total of 114 countries for the period between 1960 and 2010. The analysis – which includes pooled two-stage least-squares (2SLS), panel data analysis, system generalized method-of-moments (GMM) estimator, and an instrumental variable (IV) approach – finds that, in contrast to the prevailing view, there is no universal positive relationship between average city size and economic growth and that the results vary between high-income and developing countries. In high-income countries, there is consistent evidence of a positive albeit decreasing link between city size and economic growth. In contrast, the relationship does not hold for developing countries, for which most of the coefficients display insignificant results or point towards a negative connection between both factors.

Item Type: Article
Official URL: https://academic.oup.com/cjres
Additional Information: © 2016 Cambridge University Press
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD100 Land Use
Sets: Departments > Geography and Environment
Date Deposited: 02 Oct 2017 07:12
Last Modified: 12 Dec 2017 11:46
URI: http://eprints.lse.ac.uk/id/eprint/84371

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