Inter-cities Relationships in the Process of “Global Economy’ Urbanization”

Cities play a key role in the modern global economy. They became full-fledged (together with states, multinational corporations and international economic organizations) subjects of international economy relationships; concentrated financial and commodity markets, enormous productive and innovative potential of humanity. Due to these institutional and infrastructural transformations now we can consider a gradual process of “global economy’ urbanization” (term was offered by author) – concentration of global economical relationships, activities and power within a global net of cities.

The main reasons of transformation of economic importance of cities are their advantages in comparison with State economic systems.

Labor and capital in urban economy systems is more mobile and productive; cities are more predisposed to create and commercialize innovations. Moreover, cities are easier to connect with international markets and world trade, are able to reduce transport costs, to increase own investment attractiveness, and to rapidly form new types of business activities and forms of manufacturing organization.

This study analyzes a current system of global cities, an intensity of inter-cities relationships, a potential of global urban system transformations in a future. Original methodology of inter-cities economic collaboration’ evaluation allowed to classify modern urban economies for few types depends on their role and meaning in globalizing economy. Further interactions within a global cities hierarchy (including inter-cities competitions, inter-cities consumption and labor division and so on) will mostly identify trends and patterns of the world economy development in the nearest future. Some authors’ conclusions and forecasts about modern and future stages of global cities’ hierarchy formation are also offered in this study.