The worldwide trend to decentralize the responsibilities and budgets of governments impacts regional economies in various ways. We use the example of Spain to test empirically whether the decentralization of governance is an important determinant of the sectoral composition of cities
in an urban system. Our regression results, exploiting unique firm-level and time-varying transport-cost data, support the hypothesis that governance decentralization and the establishment of regional government headquarters in specific cities have been conducive to a more diverse
urban economic structure and a more even city-size distribution in the Spanish urban system during a period of continuous reductions in transport costs.
DIAZ LANCHAS Jorge;
MULDER Peter;
2021-09-01
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
JRC123648
0034-3404 (online),
https://www.tandfonline.com/doi/full/10.1080/00343404.2020.1863940,
https://publications.jrc.ec.europa.eu/repository/handle/JRC123648,
10.1080/00343404.2020.1863940 (online),
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