“…Furthermore, local governmental units may fail to take into account the positive externalities associated with the public goods relevant at the level of the FUA (see, e.g., Pinto, 2007). Thus administrative fragmentation can, for example, obstruct transport infrastructure investments and effective land use planning, thereby increasing congestion and reducing a city's attractiveness for individuals and businesses (see Ahrend, Gamper, and Schumann, 2014). Fragmentation may also pose problems in the area of business and environmental regulation if the additional bureaucracy associated with fragmented governance impedes growth through its effect on the ease of doing business.…”