The impact of city reputation on city performance

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Abstract
Studies have found that good corporate reputation benefits firm outcomes. Our research tests whether these benefits also hold for city reputation. We use a sample of 76 Spanish cities to analyse the effect of city reputation on city performance as measured by city economic activities, unemployment rates and net migration rates. After controlling for endogeneity and spatial autocorrelation, we find that good city reputation is positively associated with economic activities and negatively with unemployment, but not related to net migration. Our results may be of interest to local authorities, as they indicate the relevance of efforts to consolidate city reputation.
Funding Information
  • Ministerio de Educacion y Ciencia (CS02009-08599)

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