Building European Cities, Shaping Economies: The Roles of Infrastructure and Demographics in Urban Economic Performance (2017–2022)

Abstract

This study examines the interplay between urban policy interventions, infrastructure investments, and economic and labor market outcomes in large metropolitan areas from 2017 to 2022. We have employed empirical research to unravel the phenomena among these domains by employing a comprehensive dataset comprising gross value added (GVA), compensation of employees, gross fixed capital formation, environmental taxes, trade, employment, and time series data for demographic cohort transitions. Through a linear regression analysis, we uncovered strong positive associations between gross fixed capital formation and GVA and employment per capita, highlighting the critical role of infrastructure in driving urban economic growth. We also scrutinize how population dynamics—natural population changes and net migration—affect economic performance, offering valuable insights for evidence-driven urban policy. This research informs sustainable urban economic development policies and contributes significantly to the urban economics discourse.