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This article analyzes institutional changes in local governance structures as determinants of wage premium and innovation capacity of urban areas. By combining individual and metropolitan area data for the US, we study the role of institutional fragmentation, related to the number of local governments operating in an area, and institutional coordination, stemming from the creation of authorities fostering the collaboration of local governments. Our findings suggest that more fragmented institutional landmarks do not benefit the wage competitiveness and innovativeness of urban areas. If anything, they harm them. Conversely, stronger coordination among local governments boosts the productivity of functional regions by increasing their wage premium and improving their capacity to innovate. Coordination agreements between different counties or municipalities are especially relevant in the case of urban areas modifying their functional borders over time. These findings provide key insights into the economic effects of reforming the governance structure of metropolitan areas.

This article argues that theories of economic development and productivity should move beyond the generally known factors and mechanisms of such development. It is theoretically proposed and empirically illustrated that differences in human behavior are significant deep-rooted causes of spatial economic and productivity disparities. The article examines the relationship between behavioral constructs and productivity using data for local areas across England. Measures of personality psychology and community culture (including both living culture and cultural heritage) are hypothesized to be related to activities impacting upon productivity performance at the local level. The analysis indicates that underlying human behavioral factors play a role in determining rates of productivity and levels of economic development in localities and regions. Culture and psychological traits, as manifested in the form of the psychocultural behavior of localities and regions, appear to shape their long-term development trajectories. Localities that have relatively atomized behavioral environments with high levels of individual commitment tend to enjoy productivity benefits. Similarly, places with high rates of cultural diversity and extravert individuals have relatively high rates of productivity. It is concluded that from a policy perspective, governments looking to level up local and regional economies should pay greater attention to understanding behavioral influences on productivity, especially related to strategies focused on behavioral nudges, institutional changes, and education systems.

Reading the Handbook on the Geographies of Power, you feel like you are on a road trip to visit an old friend (or fiend, to some), especially if you have engaged in understanding, describing, or ex...

Scholars from a variety of fields have been discussing the rise and fall of cities since their inception. However, shrinking cities as a distinct academic field is relatively new. Due to its infanc...

Largely due to its daunting inaccessibility, politically and culturally produced, Tibet has not yet received much sophisticated scholarly treatment, especially by a geographer. Emily Yeh’s Taming T...

AbstractWhile foreign direct investment (FDI) is generally assumed to represent long‐term investments within the real economy, approximately 30–50 percent of global FDI is accounted for by networks of offshore shell companies created by corporations and individuals for tax and other purposes. To date, there has been limited systematic research on the global structure of these networks. Here we address this gap by employing principal component analysis to decompose the global bilateral FDI anomaly matrix into its primary constituent subnetworks. We find that the global offshore FDI network is highly globalized, with a centralized core of jurisdictions in Northwest Europe and the Caribbean exercising a largely homogenous worldwide influence. To the extent that the network is internally differentiated, this appears to primarily reflect a historic layering of social and political relationships. We identify four primary offshore FDI subnetworks, bearing the imprint of four key processes and events: European, particularly UK colonialism, the post–WWII hegemonic alliance between the United States and Western Europe, the fall of Soviet communism, and the rise of Chinese capitalism. We also find evidence of qualitative, but not quantitative, variation in offshore FDI based on national rule of law and communist history.

A review of the book "Global Cities at Work: New Migrant Divisions of Labour," by Jane Wills, Kavita Datta, Yara Evans, Joanna Herbert, Jon May, and Cathy McIlwaine, is presented.