has data on city size by core city and urban agglomeration, and we did not find any differences when either of the two measures were used. In any case, the data has measurement errors as any data base, and this is why we used similar indicators from different sources (e.g. access to telephones in UN databases and the same indicator in EOS database) to check the sensitivity of the results across databases. These results are robust and independent of the definition of city boundaries. We did control for various definitions of city boundaries by running regressions both on core city population and metropolitan population, with same results.

# **TABLE 4: DETERMINANTS OF CITY PERFORMANCE – SYNTHESIS OF ECONOMETRIC REGRESSION RESULTS**

|**Source**<br>**Dependent Variables **|**UN 1998**<br> **Access to**<br>**Water**|**UN 1998**<br>**Access to**<br>**Electricity**|**UN 1998**<br>**Access to**<br>**Sewerage**|**UN 1998**<br>**Access to**<br>**Telephones**<br>**[1]**|**EOS 2003**<br>**Access to**<br>**Telephones**<br>**[2]**|**EOS 2003**<br>**Access to**<br>**Cell Phones**|**EOS 2003**<br>**Internet**<br>**Access**|**EOS 2003**<br>**Quality of**<br>**Infrastructure**|**EOS 2003**<br>**Quality of**<br>**Electricity**|
|---|---|---|---|---|---|---|---|---|---|
||**%**|**%**|**%**|**%**|**1-7**|**1-7**|**1-7**|**1-7**|**1-7**|
|**City Variables**||||||||||
|City Population|0 / 0|0 / 0|0 / 0|0 / 0|+ / 0|+ / 0|0 / 0|+ / *|+ / 0|
|Global City (3)|0 / 0|0 / 0|0 / 0|0 / 0|+ / 0|0 / 0|0 / 0|+ / 0|+ / **|
|Bribery in Utility|+ / '|0 / '|+ / '|+ / **|++++ / ***|++ / ***|- / 0|++++ / ***|++++ / ***|
|Business Dummy|0 / 0|0 / 0|0 / 0|+ / *|+ / '|0 / *|0 / 0|+++ / **|++ / **|
|Website dummy|0 / 0|0 / '|0 / 0|+ / 0|++ / **|+ / **|0 / 0|+ / *|+ / '|
|Budget Dummy|0 / '|0 / 0|0 / *|0 / 0|+ / *|0 / 0|+ / 0|+ / 0|0 / 0|
|Port Dummy|- / **|0 / '|0 / 0|- / **|+ / 0|0 / 0|+ / *|0 / **|- / *|
|Capital Dummy|0 / 0|0 / 0|0 / 0|0 / 0|- / 0|- / 0|+ / ***|- / *|0 / 0|
|**Country Variables**||||||||||
|Country Population|0 / 0|0 / 0|0 / 0|0 / 0|0 / 0|0 / 0|++ / **|0 / 0|- / *|
|Urbanization (%)|+ / '|0 / '|0 / 0|+ / '|+ / 0|+ / 0|0 / *|0 / '|+ / '|
|Kearney Globalization Index|0 / '|0 / 0|0 / 0|+ / 0|+ / *|+ / *|+ / *|+++ / ***|+++ / ***|
|Control of Corruption|+ / **|0 / *|+ / '|+ / **|++++ / ***|++ / **|+ / 0|++++ / ***|++++ / ***|
|Income per capita|+ / ***|+ / **|++ / ***|++ / ***|++++ / ***|+++ / ***|+++ / ***|++++ / ***|++++ / ***|
|**# of cities**|**63**|**61**|**59**|**42**|**194**|**194**|**194**|**194**|**194**|
|**Adjusted R-squared**|**0.28**|**0.11**|**0.29**|**0.37**|**0.39**|**0.28**|**0.28**|**0.45**|**0.50**|

Source: KLM city database, drawing from EOS-WEF 2003 as well as other sources as per below. Sample size: 412 cities in 134 countries. Values for magnitude (+,0,-) and significance (*,0,') in each cell were obtained by averaging results of 21 different OLS specifications. In particular, for each independent variable, for calculating the magnitude of the coefficient rating (left hand side), we computed the product of the average coefficient magnitude across all specifications times twice the standard deviation of the variable. Then we assigned magnitude values according to the following criteria: for positive coefficients, we applied a “++++” for any value above 1.2; “+++” for any value between 0.7 and 1.2; “++” for any value between 0.4 and 0.7 ; “+” for any value between 0.1 and 0.4; and finally a “0”’for any value below 0.1. Similarly, minus signs were applied to negative coefficients. For the rating on the significance of the coefficient in each cell (right hand side), we averaged the various significance levels across the 21 specifications, where *** indicates significance at 1%, **” indicates significance at 5%, * indicates significance at 10% and ‘ indicates significance at 15%. Values for number of cities and R-square were computed as simple averages across all specifications.

Sources: All dependent variables drawn from UN 1998 and EOS 2003; globalization index downloaded from Foreign Policy Magazine, 2002 (Kearney); country population and urbanization drawn from WDI 2002; city population downloaded from website: www.citypopulation.de ; port, capital, budget and business dummies drawn from KLM 2003; Control of Corruption drawn from KK02; Global city (3) drawn from GAWC (Taylor, 2001); income per capita drawn from Herston-Summers and CIA World Factbook (2001); bribery in Utility drawn from EOS 2003.

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