Advertisement

Urbanization

  • Sibabrata Das
  • Alex Mourmouras
  • Peter Rangazas
Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

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.

References

  1. Bates R (1981) Markets and states in tropical Africa. University of California Press, Berkeley.Google Scholar
  2. Bezemer D, Headey D (2008) Agriculture, development, and urban bias. World development 36(8):1342–1364.CrossRefGoogle Scholar
  3. Black D, Henderson V (1999) The theory of urban growth. Journal of political economy 107(2) 252–284.CrossRefGoogle Scholar
  4. Bloom D, Khanna T (2007) Urban revolution. Finance and development 44(3):8–14.Google Scholar
  5. de Vries J, van der Woude A (1997) The first modern economy. Cambridge University Press, New York.CrossRefGoogle Scholar
  6. Duranton G (2008) From cities to productivity and growth in developing countries. Canadian journal of economics 41(3):689–736.CrossRefGoogle Scholar
  7. Duraton G (2014) Growing through cities in developing countries. Policy research working Paper 6818. World Bank, Washington, DC.Google Scholar
  8. Duranton G, Puga D (2004) Micro-foundations of urban agglomeration economies. In: Henderson V, Thisse J (eds) Handbook of regional science and urban economics, vol. 4. North-Holland, Amsterdam.Google Scholar
  9. Fay M, Opal C (2000) Urbanization without growth: A not so uncommon phenomenon. World Bank working paper 2412. World bank, Washington, DC.Google Scholar
  10. Feler M, Henderson V (2011) Exclusionary policies in urban development: Underservicing migrant households in Brazilian cities. Journal of urban economics 69(3):253–272.CrossRefGoogle Scholar
  11. Glaeser E (2011) Triumph of the city: How our greatest invention makes us richer, smarter, greener, healthier, and happier. Penguin Press, New York.Google Scholar
  12. Gollin D, Jedwab R, Vollrath D (2013) Urbanization with and without industrialization. University of Houston Department of Economics working paper 2013-290-26.Google Scholar
  13. Hansen G, Prescott E (2002) Malthus to Solow. American economic review 92(4):1205–1217.CrossRefGoogle Scholar
  14. Harris R, Todaro R (1970) Migration, unemployment, and development: A two-sector analysis. American economic review 60(1):126–142.Google Scholar
  15. Henderson V (1974) The sizes and types of cities. American economic review 64(4):640–650.Google Scholar
  16. Henderson V (2010) Cities and development. Journal of regional science 50(1):515–540.CrossRefGoogle Scholar
  17. Henderson V, Wang HG (2005) Aspects of rural-urban transformation of countries. Journal of economic geography 5(1):23–42.CrossRefGoogle Scholar
  18. Jedwab R, Christiaensen L, Gindelsky M (2014) Rural push, urban pull and…urban push? New historical evidence from developing countries. George Washington University Institute for International Economic Policy working paper 2014–04.Google Scholar
  19. Lipton M (1977) Why poor people stay poor: Urban bias in world development. Harvard University Press, Cambridge, Massachusetts.Google Scholar
  20. Liu Z (2014) Human capital externalitiesmin cities: evidence from Chinese manufacturing firms. Journal of economic geography 14:621–649.Google Scholar
  21. Lucas R (2004) Life earnings and rural-urban migration. Journal of political economy 112(1):S29–S59.CrossRefGoogle Scholar
  22. Majumdar S, Mani A, Mukand S (2004) Politics, information, and the urban bias. Journal of development economics 75(1):137–165.CrossRefGoogle Scholar
  23. Marx B, Stoker T, Suri T (2013) The economics of slums in the developing world. Journal of economic perspective 27(4):187–210.CrossRefGoogle Scholar
  24. McCormick B, Wahba J (2003) Did public wage premiums fuel agglomeration in LDCs? Journal of development economics 70(2):349–37.CrossRefGoogle Scholar
  25. Meng X (2012) Labor market outcomes and reforms in China. Journal of economic perspectives 26(4):75–102.CrossRefGoogle Scholar
  26. Moretti E (2004a) Human capital externalities in cities. In: Henderson V, Thisse JF (eds) Handbook of regional and urban economics, vol. 4. North Holland, Amsterdam, pp 2243–2291.Google Scholar
  27. Moretti E (2004b) Worker’s education, spillovers, and productivity: Evidence from plant-level production functions. American economic review 94(3):656–690.CrossRefGoogle Scholar
  28. Mourmouras A, Rangazas P (2013) Efficient urban bias. Journal of economic geography 13(3):451–471.CrossRefGoogle Scholar
  29. Rangazas, P, Wang, X (2018) Internal migration restrictions and labor allocation in developing countries. Singapore economic reviewGoogle Scholar
  30. Rosenthal S, Strange W (2004) Evidence on the nature and sources of agglomeration economies. In: Henderson V, Thisse J (eds) Handbook of regional and urban economics, vol. 4. North Holland, Amsterdam.Google Scholar
  31. Wang X, Piesse J (2010) Inequality and the urban-rural divide in China: Effects of regressive taxation. China and the world economy 18(6):36–55.CrossRefGoogle Scholar
  32. Wang X, Weaver N (2013) Surplus labor and urbanization in China. Eurasian economic review 3(1):84–97.Google Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Sibabrata Das
    • 1
  • Alex Mourmouras
    • 2
  • Peter Rangazas
    • 3
  1. 1.Strategy, Policy & Review DepartmentInternational Monetary FundWashington, DCUSA
  2. 2.International Monetary FundWashington, DCUSA
  3. 3.Department of EconomicsIndiana University-Purdue UniversityIndianapolisUSA

Personalised recommendations