• Sibabrata Das
  • Alex Mourmouras
  • Peter C. RangazasEmail author
Part of the Springer Texts in Business and Economics book series (STBE)


In this chapter, we study migration to the city and its effects on urbanization. In previous chapters, we studied how the structural transformation affects economic growth and, in particular, how migration to the modern sector may alter private sector behavior. Here, we focus on the question of the best pace of urbanization as it relates to the allocation of rural and urban government services. Our motivation comes from the fact that the vast majority of governments around the developing world are concerned about the adequacy of public goods provision and the crowding associated with rapid urbanization (Bloom and Khanna 2007). In this sense, the structural transformation, which generally raises economic growth, can occur too quickly. A second important issue we address is the role politics plays in exacerbating rural–urban inequalities. As first stressed by Lipton (1977), the disproportionate political power of urban interests (the “urban elite”) in some developing countries’ economic policies may distort the allocation of government services, exacerbate rural–urban inequalities, and intensify migration beyond efficient levels.


Rural Household Wage Inequality Government Service Urban Household Urban Sector 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Sibabrata Das
    • 1
  • Alex Mourmouras
    • 2
  • Peter C. Rangazas
    • 3
    Email author
  1. 1.International Monetary FundWashingtonUSA
  2. 2.Asia and Pacific DepartmentInternational Monetary FundWashingtonUSA
  3. 3.Indiana University-Purdue University Indianapolis (IUPUI)IndianapolisUSA

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