Original scientific paper
https://doi.org/10.31141/zrpfs.2016.53.122.893
Economic effects of capital cities
Petar Filipić
; Ekonomski fakultet Sveučilišta u Splitu
Abstract
Using theory and case study, this paper investigates the economic benefits a city has when it is the country's capital city and pursuant to this what that city would lose if the word „capital“ was removed from it. That it is not about a scientific art for art’s sake situation, speaks the fact that over the last one hundred years in over two hundred counties world wide a completely new or shifted existing capital city has been built. With the help of a series of multipliers, the fiscal and income related effects of „capital “are identified in the existing capital city as are the influences on employment and population numbers of the capital city. In the study of the suggested cases the methodology applied to Zagreb, the capital city of Croatia is suggested. Finally, the scenario of shifting the potential „capital“ to other locations within the country is suggested, whether it be (a) a place where there is no population or applicable infrastructure or (b) another existing town. A third scenario is proposed which disintegrates „capital” and some of its functions and institutions shift to a number of various places within the country. In opposition to political decisions which historically have dominantly determined the location of the capital city, this paper primarily emphasises economic criteria which should ultimately lead to even (polycentric) development of the country as a whole.
Keywords
capital city; economic capacity; income related effects; fiscal effects; moving; polycentrism
Hrčak ID:
168800
URI
Publication date:
15.11.2016.
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