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Economic growth, size of the agricultural sector, and urbanization in Africa

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  • Brückner, Markus

Abstract

This paper uses variations in international commodity prices and rainfall to construct instrumental variables estimates of the within-country effect that changes in the size of the agricultural sector and GDP per capita growth have on the urbanization rate. For a panel of 41 African countries during the period 1960–2007, the paper’s three main findings are that: (i) decreases in the share of agricultural value added lead to a significant increase in the urbanization rate; (ii) conditional on changes in the share of agricultural value added GDP per capita growth does not significantly affect the urbanization rate; (iii) increases in the urbanization rate had a significant negative average effect on GDP per capita growth.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 71 (2012)
Issue (Month): 1 ()
Pages: 26-36

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Handle: RePEc:eee:juecon:v:71:y:2012:i:1:p:26-36

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Web page: http://www.elsevier.com/locate/inca/622905

Related research

Keywords: Economic growth; Sectoral shocks; Urbanization;

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References

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Cited by:
  1. Henderson, J. Vernon & Storeygard, Adam & Deichmann, Uwe, 2014. "50 years of urbanization in Africa : examining the role of climate change," Policy Research Working Paper Series, The World Bank 6925, The World Bank.
  2. Emran, M. Shahe & Shilpi, Forhad, 2014. "Agricultural Productivity, Hired Labor, Wages and Poverty: Evidence from Bangladesh," MPRA Paper 58099, University Library of Munich, Germany.
  3. Kym Anderson & Markus Bruckner, 2012. "Distortions to Agriculture and Economic Growth in Sub-Saharan Africa," Departmental Working Papers, The Australian National University, Arndt-Corden Department of Economics 2012-06, The Australian National University, Arndt-Corden Department of Economics.
  4. Sanghamitra Bandyopadhyay & Elliott Green, 2013. "Urbanization and Mortality Decline," Working Papers, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research 46, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.

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