A metropolitan region does not have formal institutional structures such as nations, states, and cities, but it is a system that can be conceptualized and studied as a whole. The study of metropolitan areas too often ignores the dynamic relationship sat the intersection of state and local governments. This study suggests a two-dimensional typology of governance in metropolitan regions. The authors found that governance affects the long-term competitiveness of the metropolitan economy. Governance does not determine economic outcomes but reduces the ability to adapt. The worst combination for metropolitan competitiveness is decentralization within regions where there is a centralized state government.
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