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The slow growth of the permanently settled migrants in host cities poses new challenges for the sustainability of China's future urbanization. Given the growing importance of homeownership, this paper clarifies migrants' settlement intentions into three mutually exclusive patterns, including de facto permanent settlement intention through homeownership, long‐term temporary settlement intention and short‐term temporary settlement intention. Based on matched micro‐ and macro‐level data, this paper examines the influence of city economic development and housing prices on these three patterns. The results suggest that economic development exhibits an attractive effect on migrants' settlement intentions for both earning money and for making a life while housing price weakens rural migrants' de facto permanent settlement intention. We also highlight the effect of the Housing Provident Fund (HPF), the most important housing financial policy in China, on settlement intention, and the results suggest that the HPF serves as an option to help migrants achieve permanent settlement through housing availability. The findings can explain the mixed results of previous research and provide policy references for sustainable urbanization in China. [ABSTRACT FROM AUTHOR]

The rapid economic ascent of China and the increasing integration of the world economy in the past two decades have made metropolises in China such as Shanghai and Beijing emerging global cities. Foreign investment is a central force underlying the emergence and transformation of the Chinese metropolises into global cities. This is especially true in Shanghai, which has experienced massive infusion of foreign investment. Varied forms of foreign investment or development zones have been created to promote foreign investment inflows, yet remain under-studied. This paper analyzes structure, performance, and underlying factors of development zones in Shanghai, and discusses the implications for global city-formation; it unfolds the variations among development zones, and illustrates the significant role of the state and local conditions. As the literature on global cities dwells primarily on the experiences of advanced economies, this paper further contributes to a better understanding of the dynamics of emerging global cities in the developing world. [ABSTRACT FROM AUTHOR]

ABSTRACT Local economic development policies worldwide perceive business incubation as an effective measure to promote regional growth through the support of young and innovative ventures. The common assumption is that incubation promotes firm growth, in particular after these firms graduated from their incubator organisations. However, knowledge regarding the performance of incubated ventures after they have (successfully) completed their incubation is almost non-existent. This article investigates the long-term development of 324 graduate firms from five German business incubators (incubated between 1990 and 2006). The present study does not suffer from a survivor bias, meaning that performance data of non-surviving firms is also included. Using employment and sales measures as performance indicators, this study contradicts existing results with regard to long-term graduate performance. Findings of this paper do not support the presumption of sustainable and strong firm growth beyond incubation. [ABSTRACT FROM AUTHOR]

Today rapidly growing economies depend more on the creation, acquisition, distribution, and use of knowledge. As such, strategies for enhancing research and innovation capabilities have come to occupy a more important position in many developing nations, including China. Already the leading production center, and often seen as China's economic locomotive, Shanghai is striving aggressively to retain its national preeminence and has launched concerted efforts to increase local innovative output. The primary purpose of this paper is to understand how state-led efforts have fared in promoting technology innovation. By situating the city in the national and global context, the paper shows that Shanghai has gained a substantial lead in developing an innovation environment with extensive global linkages and leading research institutions. Recent efforts in building up the research and innovation capacity of the enterprise sector have begun to show progress. Although firms are enthusiastic about its future as an innovation center, Shanghai continues to face challenges of inadequate protection of intellectual property, lack of venture capital investment, and the tightening supply of highly qualified knowledge workers. [ABSTRACT FROM AUTHOR]

In this paper, a formal model for the relationship between innovation and growth in European Union regions is developed drawing upon the theoretical contribution of the systems of innovation approach. The model combines the analytical approach of the regional growth models with the insights of the systemic approach. The cross-sectional analysis, covering all the Enlarged Europe (EU-25) regions (for which data are available), shows that regional innovative activities (for which a specific measure is developed) play a significant role in determining differential regional growth patterns. Furthermore, the model sheds light on how geographical accessibility and human capital accumulation, by shaping the regional system of innovation, interact (in a statistically significant way) with local innovative activities, thus allowing them to be more (or less) effectively translated into economic growth. The paper shows that an increase in innovative effort is not necessarily likely to produce the same effect in all EU-25 regions. Indeed, the empirical analysis suggests that in order to allow innovative efforts in peripheral regions to be as productive as in core areas, they need to be complemented by huge investments in human capital. [ABSTRACT FROM AUTHOR]

Over the last two decades many European governments have pursued ambitious research and development (R&D) policies with the aim of fostering innovation and economic growth in peripheral regions of Europe. The question is whether these policies are paying off. Arguments such as the need to reach a minimum threshold of research, the existence of important distance decay effects in the diffusion of technological spillovers, the presence of increasing returns to scale in R&D investments, or the unavailability of the necessary socio-economic conditions in these regions to generate innovation seem to cast doubts about the possible returns of these sort of policies. This paper addresses this question. A two-step analysis is used in order to first identify the impact of R&D investment of the private, public, and higher education sectors on innovation (measured as the number of patent applications per million population). The influence of innovation and innovation growth on economic growth is then addressed. The results indicate that R&D investment, as a whole, and higher education R&D investment in peripheral regions of the EU, in particular, are positively associated with innovation. The existence and strength of this association are, however, contingent upon region-specific socio-economic characteristics, which affect the capacity of each region to transform R&D investment into innovation and, eventually, innovation into economic growth. [ABSTRACT FROM AUTHOR]

Recent studies have identified factors statistically related to differences in state economic growth. These findings relate to regional policy because they appear to identify political options that could then be justified as improving growth. This paper evaluates the reliability of these studies as policy guides. It finds that most statistical conclusions are fragile and are therefore risky policy guides. Economic base theory performs well, and provides the most reliable state level policy options. These policies, however, have to be crafted carefully to avoid pitfalls associated with traditional (and perhaps unpopular) basic industries. [ABSTRACT FROM AUTHOR]

Despite high economic growth over the past 30 years, China's substantial and persistent regional disparities have been the subject of continuing concern to policy makers, as well as the target of a wide variety of policies. An important issue in the policy debate about whether and how best to attack these disparities is whether measures designed to improve regional equality come at a cost to national development, i.e., whether there is a trade-off between the level of national output and the equality of its distribution across the regions. There is little analysis of this issue in the literature. We help fill this gap by setting up a two-region model designed to capture some of the salient features of the Chinese economy. We subject this model to a number of policy shocks and assess the effects on regional disparities in per capita output, on the one hand, and on aggregate output on the other to investigate the trade-off. We also consider income and welfare as alternatives to output. We find, first, that disparities in per capita output, income, and welfare may move in different directions so that it is important to specify which disparity is being targeted. Second, since both disparities and aggregate outcomes are endogenous, how they move together depends on the nature of the shock driving the model. Thus, some policies designed to reduce disparities face a trade-off and others do not. Only a reduction in internal migration restrictions unambiguously reduces all three disparity measures and increases aggregate output, income, and welfare. All other policies considered face a trade-off in at least one dimension. Third, whether there is a trade-off depends also on the time horizon-some policies face a trade-off in the short run and not in the long run and vice versa. [ABSTRACT FROM AUTHOR]

Progress in analysing the instrumental view of governance as an engine for growth, poverty reduction, and inclusive development has been held back by the difficulty in framing governance. This essay seeks to address this problem by 1) reframing urban governance 2) evaluating its aims, processes, and outcomes, and 3) explaining those outcomes on the basis of which some lessons are teased out. Using examples from Africa and an institutional political economy approach (based on institutional economics, Marxist political economics, Georgist political economics, and Polanyian political economy), I show that, overall, while urban economies are growing; both urban poverty and inequality levels have risen substantially. Urban governance has paved the way for new forms of urban development that only benefit the few. Not only are there differences in how urban services and resources are experienced, accessed, and controlled but the varieties are also socially differentiated. I argue that the underlying reasons for this disjuncture between 'urban governance' in theory and 'actually existing urban governance' are 1) difficulties in implementing urban governance theory consistently in practice, 2) problems arising because urban governance theory has been implemented in practice, 3) tensions that would entangle most policies which do not address historical and structural economic issues, 4) restrictive assumptions, and 5) incoherence among the different dimensions of urban governance. To resolve these contradictions, I put the case for major structural and institutional change involving: 1) the re-ordering of the roles of the state, market, and society as institutions of change; 2) re-working the relationships that bind together land, labour, capital, and the state, and 3) re-organising the channels for keeping the attainment of the ends of urban governance in check. [ABSTRACT FROM AUTHOR]

Municipal annexation is the most common form of local government boundary change and can have profound impacts on the annexing municipality as well as the area being annexed. While urban scholars have often touted the economic benefits of annexation for municipalities, little research has been conducted on the effect of annexation type on the economic well-being of a municipality. Do voluntary annexations result in a larger economic windfall for annexing municipalities? Do involuntary annexations cost more? This study examined more than 6,000 annexations conducted by North Carolina municipalities between 1990 and 2000 in order to explore the impact annexation methodology had on municipal fiscal health. The results reveal that during the study period annexation resulted in a decrease in municipal fiscal health for North Carolina municipalities and that involuntary annexation had a particularly detrimental effect. This finding contradicts much of the previous research on the economic benefits of annexation for municipalities. [ABSTRACT FROM AUTHOR]

As Shanghai strives to build itself into an international center of finance, trade, and commerce, a new retail economy has evolved accordingly. In the past two decades, its retail sector has been transformed from a simple and inefficient distribution system to a much more complex and highly competitive market-oriented economy. The new retail economy in many ways resembles the contemporary capitalist retail economy in the Western cities, but it also exhibits significant differences with Chinese characteristics. While the affluent consumer market is the necessary condition for sustained retail growth, it is the retail deregulation that has been the fundamental driving force for the structural changes in Shanghai's retail sector. Its liberal policies attracted major international retailers to either choose Shanghai as the gateway city to enter the China market, or locate their China headquarters offices in Shanghai to command their operations throughout the country. Indeed, the retail transformation in post-reform Shanghai is a clear testimony of the Economic Transition Model. The main data sources for this empirical study are the 1999 Census of Commercial Activity in Shanghai and the Shanghai Statistical Yearbook. They are supplemented by data collected from reputable Web sites and through field work in Shanghai. [ABSTRACT FROM AUTHOR]

Deals with the political implications of state and local fiscal structure for state economic policy. Overview of the performance of Wyoming's economy since 1970; Description of the state's fiscal structure; Discussion of major thrusts of economic development policy since the late 1960s.