Using the concept of an effective medium, we derive coupled mode equations for nonlinear quadratic interactions in photonic band gap structures of finite length. The resulting equations reveal the essential roles played by the density of modes and effective phase matching conditions necessary for the strong enhancement of the nonlinear response. Our predictions find confirmation in an experimental demonstration of significant enhancement of second harmonic generation near the photonic band edge. The measured conversion efficiency is in good agreement with the conversion efficiency predicted by the effective-medium model.