The city of Iasi with a population of over
300,000 people is the biggest European Union
city at the border with the former-Soviet space.
The article, part of an extended study on territorial
development of Iasi and its peri-urban area,
focuses on the role of the city to trigger regional
growth and to enhance cross border cooperation.
Recent processes at work generating economic
cohesion and integration are explored drawing
on the catalytic factors of development and the
specialization of local economies. The paper
discusses also the externalities of urban growth
such as the urban sprawl that causes land use
conflicts at the rural-urban fringe. It argues that
human capital and higher birth rates than the
national average are the strengths, and low
connectivity and accessibility are the weaknesses
for regional growth. The regional polarization of the
city is based on the supply of high level services
over the entire North-East Region and opportunities
to cross border cooperation through the expansion
of an agro-alimentary supply-chain are highlighted.
Building on the main capabilities and assets of the
agglomeration economies of Iasi, the paper finally
identifies some of the mechanisms and structures
that foster urban and regional growth.