Competitive Cities : Reshaping the Economic Geography of Romania
This document examines the geographic distribution of employed individuals across Romania, the implications, and recommendations. Under optimal conditions, cities concentrate economic resources and human talent in a virtuous cycle of increasing urb...
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Format: | Working Paper |
Language: | English en_US |
Published: |
Washington, DC
2014
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Online Access: | http://documents.worldbank.org/curated/en/2013/12/19060303/romania-competitive-cities-reshaping-economic-geography-romania-vol-1-2-full-report http://hdl.handle.net/10986/17559 |
Summary: | This document examines the geographic
distribution of employed individuals across Romania, the
implications, and recommendations. Under optimal conditions,
cities concentrate economic resources and human talent in a
virtuous cycle of increasing urbanization that generates a
diverse range of opportunities, enabling people to find
better-paying jobs, companies to recruit employees with the
right set of skills, and capital and ideas to flow across
space more efficiently. The benefits of agglomeration kick
in rapidly, increasing the attraction of cities as living
and working spaces. However, in the short term, uneven
development across regions is both a normal and an
inevitable phenomenon. Regrettably, many policymakers tend
to resist growing internal divergence, trying to
artificially spread the benefits of growth evenly across
space. In practice, however, such policies rarely have the
intended effects, often wasting resources and slowing down
the economy. The basic solution for lagging areas is instead
to connect people living there to opportunities in growing
cities and offer them access to basic infrastructure for
encouraging short-term working mobility and discouraging
depopulation/ peremptory migration in favor of intra- and
inter-county commuting. In the long run, convergence in
living standards will occur as benefits from leading areas
spill over to surrounding communities and people who had
left lagging areas bring back capital, jobs, and ideas. |
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