An Analysis on Urban Competitiveness of Global Cities and Its Effect on Economic Growth

Purpose - The purpose of this study is to rank the major global cities by developing a comprehensive competitiveness index using the Global Cities Forecast (2013) data. We also aim to compile the global rankings of 770 cities’ competitiveness by combining the global competitiveness index and the distribution index. Design/methodology/approach - We use a panel regression model to analyze the relationship between the competitiveness index and the distribution index. The city competitiveness index was developed from 18 indicators including a scale index, ratio index, and growth rate index. The Gini coefficient was used for the distribution index. Findings - We found that an increase in income inequality has a statistically significant negative effect on the economic growth rate in a 5-year time lag. Research implications or Originality - The ranking trends show that U.S. cities will continue to be competitive, and cities in China, Oceania and the Middle East are expected to be more competitive. On the other hand, the competitiveness of cities in Japan and Korea is expected to decline. Accordingly, by 2030, the global competitiveness landscape will change substantially, except for the United States.