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Globalisation: Countries, Cities and Multinationals

Author

Listed:
  • Philip McCann

    (University of Waikato NZ; University of Reading UK; University of Groningen, The Netherlands)

  • Zoltan J. Acs

    (George Mason University)

Abstract
In this paper we explore the relationship between the size of a country, the size of its cities, and the economic performance of the country. In order to do this we integrate three different literature, namely the literature on optimal country size, literature on historical processes of urbanisation and the performance of cities, and literature on the role of multinational firms in the global economy. Using an economic geography perspective, we demonstrate that the relationship between city-size and the prosperity of the nation state, to a much more complex set of relationships. In the modern era of globalisation the role of global companies within the city-region is critical, and city-regions in turn are seen to drive national economies. As such, the relationships between firms, cities and countries have been largely reversed, casting doubt on various institutional economic theories.

Suggested Citation

  • Philip McCann & Zoltan J. Acs, 2009. "Globalisation: Countries, Cities and Multinationals," Jena Economics Research Papers 2009-042, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2009-042
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    References listed on IDEAS

    as
    1. Ronald Findlay & Kevin H. O'Rourke, 2007. "Power and Plenty: Trade, War and the World Economy in the Second Millennium (Preface)," Trinity Economics Papers tep0107, Trinity College Dublin, Department of Economics.
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    5. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    6. Zoltan Acs & Niels Bosma & Rolf Sternberg, 2008. "The Entrepreneurial Advantage of World Cities - Evidence from Global Entrepreneurship Monitor Data," Jena Economics Research Papers 2008-063, Friedrich-Schiller-University Jena.
    7. Ronald Findlay & Kevin H. O'Rourke, 2007. "Introduction to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    8. Ronald Findlay & Kevin H. O'Rourke, 2007. "Preface to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    scale; cities; countries; multinational firms; globalisation;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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