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Pengfei Ni

framework and analytical methods 31 such as the exchange rate, the interest rate, the overall tax burden and labor costs. Krugman (1991) holds the view that local market demand is not only important to urban competition, but it is also likely to generate accumulative consequences. Given sufficiently strong economies of scale, each manufacturer wants to serve the national market from a single location. To minimize transportation costs, a manufacture will choose a location with large local demand. But local demand will be large precisely where the majority of

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Peter Karl Kresl and Earl H. Fry

in the interest of their farmers, labor, or companies. In Europe, the conflict between the growth and stability pact of the Monetary Union and rising unemployment in France, Germany and Italy has resulted in these three nation states thumbing their noses at the requirement that the budget deficit does not exceed 3 per cent of GDP. When push comes to shove, nation states awaken from their slumber and assert themselves as they always have and, most likely, always will. The self-imposed limitation on the action of national governments has shifted the responsibility and

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Peter Karl Kresl and Earl H. Fry

to enhance their competitiveness from the national or state/provincial levels of government. An additional difficulty in this area arises from the fact that in large nations the regional components of the national economy are so diverse in their needs for interest rate policy or counter-cyclical fiscal policy or international trade policy that no single approach to the specific policy will meet the needs of most of the cities. This is shown clearly in the efforts of the European Central Bank to design a monetary policy for Euroland and the difficulty the member nations

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Peter Karl Kresl and Earl H. Fry

addition to putting a symbolic end to a long history of conflict and war, these linkages are one effort toward the goal of creating a European identity or a sense of European-ness in the sensibilities of the residents of the cities that are involved. Recently the governments of Germany and France made explicit their interest in this initiative by establishing mandates in each country to increase instruction in the language of the other, to develop linkages between and among subnational entities in the two countries and, in the terms of the French minister for European

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Peter Karl Kresl

interest in the SEA is the impact its implementation had on the economic situation of cities in the member countries. Realization of the four freedoms meant that what was being given up was the deep and pervasive structure of intervention in economic transactions on the part of national governments. While market economists would all argue that these interventions were inefficient and that they lowered incomes and increased unemployment for residents of member countries, their supporters would counter that the interventions provided stability, equity and shelter in a

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Jaime Sobrino

) fiscal discipline; (2) reorientation of public expenditure toward the areas of economic development and income distribution: (3) fiscal reform; (4) free movement of interest rates; (5) free movement of exchange rates; (6) commercial opening-up; (7) liberation of foreign direct investment; (8) privatization of state enterprises; (9) deregulation; and (10) security of property rights. The commercial opening-up of Mexico was rapidly carried out: in 1980 more than 70 percent of the imported goods of the country were regulated by import licenses, while this was reduced to

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Stefano Mollica and Giovanna Hirsch

4. Urban competitiveness in Italy: a benchmarking and benchlearning approach to support local government decisions Stefano Mollica and Giovanna Hirsch 4.1 INTRODUCTION Recent years have witnessed a renewed interest from both academics and policy makers on the concept of competitiveness between territories  –  nation states, regions, urban regions and cities – which compete for attracting investments, firms, tourists, big events and ultimately citizens. In particular, the issue of “urban competitiveness” is now not only at the centre of scientific studies but

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Guido Ferrari

5. Enhancing innovation-­based urban competitiveness Guido Ferrari 5.1  INTRODUCTION The situation of the studies on city or urban competitiveness (the two entities do not exactly overlap but we shall treat them as the same concept) through economic innovation is very complicated and not yet categorically delineated. Against an ever-­increasing interest by governments, public institutions, universities, research centres, scholars and the now huge mass of scientific and non-­scientific publications on the subject, plus the organization of activities and events

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European Cities and Global Competitiveness

Strategies for Improving Performance

Edited by Peter Karl Kresl and Daniele Ietri

The volume begins with an Introduction, followed by a set of three papers in Part Two examining European urban competitiveness from the standpoints of measurement and policy. This section also provides a case study of the cities of one country – Italy – from which the reader can gain an understanding of the current position of European cities as well as what might be possible going forward. Experience has shown that perhaps the most crucial element in competitiveness enhancement is good and effective governance. To that end, Part Three examines structural aspects of urban government, including polycentric regions, wide metropolitan cooperation, the role of social actors and territorial aggregation. Part Four treats issues of innovation from two perspectives and provides a case study from Eindhoven, while also covering social issues such as demographics, participation, social exclusion and mobility.
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Pengfei Ni, Wei Shaokun, Liu Kai and Zheng Qiongjie

the magnitude of GDP is a reflection of the market share of a city in both internal and external markets. Economic growth is an important reflection of a city’s potential competitiveness. The growth rate of GDP, especially the ­long-­term growth rate, is an important index of a city’s economic speed. Development level reflects the city’s competitiveness and development. GDP per capita is an important indicator of a city’s or a region’s development level. It is also an important reflection of its citizens’ incomes. Economic aggregation promotes competitiveness