Urbanization, Urban Concentration and Economic Growth in Developing Countries

CREDIT Research Paper No. 03/14

33 Pages Posted: 2 Jan 2004

See all articles by Luisito Bertinelli

Luisito Bertinelli

Universite du Luxembourg

Eric Strobl

Ecole Polytechnique, Paris - Department of Economic Sciences; IZA Institute of Labor Economics

Date Written: September 2003

Abstract

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

Bertinelli, Luisito and Strobl, Eric, Urbanization, Urban Concentration and Economic Growth in Developing Countries (September 2003). CREDIT Research Paper No. 03/14, Available at SSRN: https://ssrn.com/abstract=464202 or http://dx.doi.org/10.2139/ssrn.464202

Luisito Bertinelli (Contact Author)

Universite du Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

Eric Strobl

Ecole Polytechnique, Paris - Department of Economic Sciences ( email )

Ecole Polytechnique
Department of Economics
Paris, 75005
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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