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Urbanization and growth

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  • BERTINELLI, Luisito
  • BLACK, Duncan

Abstract

In a simple urban economics framework, we aim at highlighting how the trade-off between optimal and equilibrium city size behaves when introducing dynamic human capital externalities beside the classical congestion externalities. Our purpose is to show that there are dynamic gains from oversized cities. To this end, we assume that productivity depends on human capital, which is solely accumulated in cities, such that urbanization is the engine of growth. In an empirical illustration, we highlight the link between urbanization and human capital accumulation, by focusing on cross-country panel data.

Suggested Citation

  • BERTINELLI, Luisito & BLACK, Duncan, 2002. "Urbanization and growth," LIDAM Discussion Papers CORE 2002044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2002044
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    References listed on IDEAS

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    More about this item

    Keywords

    urbanization; human capital accumulation; economic development;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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