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Urbanization, population transition, and growth

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  • Jie Zhang

Abstract

This paper analyzes a dual economy consisting of urban market areas and less developed rural areas with or without local markets. Urban areas have better opportunities for earnings and education than rural areas. Rural families choose whether to move to urban areas at costs that differ from location to location. As per capita output grows relative to the moving cost, urbanization proceeds, leading to lower fertility, more investments in human and physical capital per child relative to output per worker, and faster economic growth. These impacts are stronger if rural areas have no access to markets. Copyright 2002, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 54 (2002)
Issue (Month): 1 (January)
Pages: 91-117

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Handle: RePEc:oup:oxecpp:v:54:y:2002:i:1:p:91-117

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Cited by:
  1. E. Lance Howe & Lee Huskey & Matthew D. Berman, 2011. "Migration in Arctic Alaska: Empirical Evidence of the Stepping Stones Hypothesis," Working Papers 2011-03, University of Alaska Anchorage, Department of Economics.
  2. Sato, Yasuhiro, 2007. "Economic geography, fertility and migration," Journal of Urban Economics, Elsevier, vol. 61(2), pages 372-387, March.
  3. McDonald, Stuart & Zhang, Jie, 2012. "Income Inequality And Economic Growth With Altruistic Bequests And Human Capital Investment," Macroeconomic Dynamics, Cambridge University Press, vol. 16(S3), pages 331-354, November.
  4. Giam Cipriani, 2006. "Endogenous fertility, international migration and growth," International Review of Economics, Springer, vol. 53(1), pages 49-67, March.
  5. W.A. NaudÈ & W.F. Krugell, 2003. "An Inquiry into Cities and their Role in Subnational Economic Growth in South Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(4), pages 476-499, December.
  6. Bloom, David E & Canning, David & Fink, Günther & Khanna, Tarun & Salyer, Patrick, 2010. "Urban Settlement: Data, Measures, and Trends," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  7. Kevin Sylwester, 2008. "Foreign Aid and Urbanization in Developing Countries," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 7(2), pages 153-166, August.
  8. Yuhua Shi & Jie Zhang, 2009. "On high fertility rates in developing countries: birth limits, birth taxes, or education subsidies?," Journal of Population Economics, Springer, vol. 22(3), pages 603-640, July.
  9. Hiroshi Aiura & Yasuhiro Sato, 2009. "A model of urban demography," Discussion Papers in Economics and Business 09-18-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Nov 2009.
  10. Bandeira, Pablo & Sumpsi, Jose Maria, 2009. "Access to land and rural poverty in developing countries: theory and evidence from Guatemala," MPRA Paper 13365, University Library of Munich, Germany.
  11. Joel M. Guttman, 2010. "Urbanization, Old-Age Security, Saving and Fertility in Developing Economies," NFI Working Papers 2010-WP-07, Indiana State University, Scott College of Business, Networks Financial Institute.
  12. Sato, Yasuhiro & Yamamoto, Kazuhiro, 2005. "Population concentration, urbanization, and demographic transition," Journal of Urban Economics, Elsevier, vol. 58(1), pages 45-61, July.

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