Urban growth effects on rural population, export and service employment: evidence from eastern France

Abstract

This paper examines how the spatial pattern of urban growth in functional economic regions influences the interplay of rural export employment, rural services employment, and population change in rural areas. Using an extension of the Boarnet’s model (Papers in Regional Science 73:135–153, 1994), we find that urban spread effects to rural areas in France are more likely than urban backwash effects, and that spatial urban (both dynamic and static) externalities affect rural population and employment growth. In the functional economic regions where the urban core is declining and the urban fringe is expanding, urban population growth involves an increase in rural export employment, and larger change in service employment favors rural population growth. However, urban export job growth reduces the growth in rural service jobs and expanding urban service jobs reduce rural export jobs, suggesting that expanding urban employment opportunities draws employees away from proximate rural communities. Conversely, where both urban core and fringe are growing, we observe an urban spread effect from the urban export sector to rural services—an export base multiplier effect with a spatial dimension—and from urban population growth to rural service employment.