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From Cities to Productivity and Growth in Developing Countries

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  • Duranton, Gilles

Abstract

This paper reviews the evidence about the effects of urbanisation and cities on productivity and economic growth in developing countries using a consistent theoretical framework. Just like in developed economies, there is strong evidence that cities in developing countries bolster productive efficiency. Regarding whether cities promote self-sustained growth, the evidence is suggestive but ultimately inconclusive. These findings imply that the traditional agenda of aiming to raise within-city efficiency should be continued. Furthermore, reducing the obstacles to the reallocation of factors and activities, and more generally promoting the movement of human capital and goods across cities may have significant positive dynamic effects as well static ones.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6634.

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Date of creation: Jan 2008
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Handle: RePEc:cpr:ceprdp:6634

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Keywords: cities in developing countries; growth; urbanisation;

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Cited by:
  1. Brülhart, Marius & Sbergami, Federica, 2009. "Agglomeration and growth: Cross-country evidence," Journal of Urban Economics, Elsevier, vol. 65(1), pages 48-63, January.
  2. Marius Brülhart, . "The Spatial Effects of Trade Openness: A Survey," Discussion Papers 10/10, University of Nottingham, GEP.
  3. Steven Poelhekke & Frederick Van der Ploeg, 2008. "Growth, Foreign Direct Investment and Urban Concentrations: Unbundling Spatial Lags," CESifo Working Paper Series 2474, CESifo Group Munich.
  4. Jan K. Brueckner & Harris Selod, 2008. "A Theory of Urban Squatting and Land-Tenure Formalization in Developing Countries," CESifo Working Paper Series 2328, CESifo Group Munich.
  5. Richard Arnott, 2008. "Housing policy in developing countries. The importance of the informal economy," Working Papers 200801, University of California at Riverside, Department of Economics, revised Jan 2008.
  6. Brückner, Markus, 2012. "Economic growth, size of the agricultural sector, and urbanization in Africa," Journal of Urban Economics, Elsevier, vol. 71(1), pages 26-36.

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