Some cities and regions grow faster than others and they increase their relative shares in the global economy. The literature offers a wide list of factors of competitiveness, most of which define individual capacities of cities. Recently, however, there has been an increasing focus on the importance of network governance and the policy networks formed between different cities. This paper examines the importance of policy networks compared with other widely recognised factors of competitiveness to the economic performance of settlements in the Izmir region and investigates the importance of classical competitiveness indicators and network relations on their economic performance with the use of econometric methods. In conclusion, it discusses the importance of policy networks in administrative reform processes and economic development policies.
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