By ESPON, 2010.

This report sets out the findings from the CAEE study, whose primary purpose was to examine the relationship between agglomeration economies and city-regional/metropolitan governance. Any attempt to examine this relationship has to address significant conceptual as well as empirical challenges. However these challenges are worth facing because of the importance of linking together two vigorous debates that have taken place, in academia and policy-making circles, largely independently, in recent years. The first focuses on the importance of ‘new’ agglomeration economies to patterns of European spatial economic change and especially the apparent ‘stretching’ of national and international urban hierarchies (i.e. growing differences in the economic performance of urban areas). The second concerns claims that are made for the emerging importance of governance arrangements for ‘natural economic areas’ in facilitating effective adaptation to economic change.

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