1887

OECD Regional Development Working Papers

Working papers from the Regional Development Policy Division of the OECD cover a full range of topics including regional statistics and analysis, urban governance and economics, rural governance and economics, and multi-level governance. Depending on the programme of work, the papers can cover specific topics such as regional innovation and networks, the determinants of regional growth or fiscal consolidation at the sub-national level.

English

Urban-to-Rural Population Growth Linkages

Evidence from OECD TL3 Regions

The objective of this paper is to better understand how the population growth rates of rural regions are affected by their closeness to urban regions and by the economic performance of the latter. By means of a cross-sectional analysis of OECD TL3 regions, it identifies the growth spillover effects from the net effect of distance to non-rural places. Distance-based measures are used to approximate the extent to which urban and rural areas are integrated in relational terms. Results shows that positive growth spillovers exist, suggesting that spread effects overcome backwash effects and thus that rural regions benefit from the growth process taking place in urban and intermediate regions. After having controlled for these growth spillovers, the distance from urban and intermediate regions has a negative effect on the population growth rate of rural regions. Nevertheless, both the strength of this effect and the growth spillovers decay with distance. Results further suggest that proximity to urban areas has higher positive influence than to intermediate areas.

English

Keywords: linkages, rural, spillovers, urban, growth
JEL: R58: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis / Regional Development Planning and Policy; R11: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; R12: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Size and Spatial Distributions of Regional Economic Activity
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