How much does urban location matter for growth?

This paper analyses the effect of location characteristics on urban growth using regression cubic splines. Our empirical analysis shows that in Spain, differences in accessibility to major urban centres and geographic isolation help explain differences in population growth rates across municipalities between 2001 and 2014. Moreover, even though physical proximity to large cities is usually assumed to be closely related to the attractiveness of a municipality, we found that urban population growth is even more related to the joint effect of distance to major centres and agglomeration. In this respect, there seems to be a threshold from which agglomeration diseconomies come into play such that a greater proximity to major cities and/or being localized within a more densely populated area goes against local growth.