URBAN‐TO‐RURAL POPULATION GROWTH LINKAGES: EVIDENCE FROM OECD TL3 REGIONS*

Abstract

ABSTRACT The objective of this paper is to understand, from an international comparative perspective, how population growth in rural regions is affected by the relationship with their nearby urban centers. By means of a cross‐sectional analysis on OECD small regions (Territorial Level 3), the paper distinguishes spread effects—positive spillovers arising from urban growth—from the net effect of distance to nonrural places. The results show that spread effects outweigh backwash effects, so that rural regions benefit from growth in urban places. A rural region's distance from urban and intermediate regions has a negative effect on its population growth rate. Nevertheless, both the strength of this effect and the growth spillovers decline with distance, and this occurs relatively faster in Europe. The results further suggest that proximity to large urban areas has a higher positive influence than proximity to intermediate areas, but only outside Europe.