Urbanization, Urban Concentration and Economic Growth in Developing Countries
CREDIT Research Paper No. 03/14
33 Pages Posted: 2 Jan 2004
Date Written: September 2003
We investigate how urban concentration and urbanization affect economic growth in developing countries. Using semi-parametric estimation techniques on a cross-country panel of 39 countries for the years 1960-1990 we discover a U-shaped relationship for urban concentration. this suggests the existence of an urban-concentration trap where marginal increases in urban concentration would reduce growth for about a third of our sample. Furthermore, there appears to be no systematic relationship between urbanization and economic growth.
Keywords: urban concentration, economic development, LDCs, semiparametric estimations
JEL Classification: R11, O18, C14
Suggested Citation: Suggested Citation