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Cities in the developing world

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Author Info

  • Henry G. Overman
  • Anthony J. Venables

Abstract

Rapid urbanisation is a major feature of developing countries. Some 2 billion more people are likely to become city residents in the next 30 years, yet urbanisation has received little attention in the modern development economics literature. This paper reviews theoretical and empirical work on the determinants and effects of urbanisation. This suggests that there are substantial productivity benefits from cities, although unregulated outcomes may well lead to excessive primacy as externalities and coordination failures inhibit decentralisation of economic activity. Policy should operate both by identifying and addressing these market failures, and by seeking to remove institutional obstacles to decentralisation.

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File URL: http://eprints.lse.ac.uk/19887/
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Bibliographic Info

Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 19887.

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Length: 36 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:ehl:lserod:19887

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Keywords: Urbanisation; economic development;

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References

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  1. Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self-Discovery," Working Paper Series rwp02-023, Harvard University, John F. Kennedy School of Government.
  2. Henderson, J Vernon & Venables, Anthony J., 2004. "The Dynamics of City Formation: Finance and Governance," CEPR Discussion Papers 4638, C.E.P.R. Discussion Papers.
  3. Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from France and Japan," NBER Working Papers 4612, National Bureau of Economic Research, Inc.
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  8. Lall, Somik V. & Jun Koo & Chakravorty, Sanjoy, 2003. "Diversity matters - the economic geography of industry location in India," Policy Research Working Paper Series 3072, The World Bank.
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  14. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
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  17. Khalid Nadvi, 1999. "The cutting Edge: Collective efficiency and international competitiveness in Pakistan," Oxford Development Studies, Taylor & Francis Journals, vol. 27(1), pages 81-107.
  18. Henderson, J. Vernon, 1991. "Urban Development: Theory, Fact, and Illusion," OUP Catalogue, Oxford University Press, number 9780195069020.
  19. Lall, Somik V. & Shalizi, Zmarak & Deichmann, Uwe, 2004. "Agglomeration economies and productivity in Indian industry," Journal of Development Economics, Elsevier, vol. 73(2), pages 643-673, April.
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  21. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
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Citations

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Cited by:
  1. Florence Kondylis, 2005. "Agricultural Returns and Conflict: Quasi-Experimental Evidence from a Policy Intervention Programme in Rwanda," CEP Discussion Papers dp0709, Centre for Economic Performance, LSE.
  2. Lubna Hasan, 2008. "On Measuring the Complexity of Urban Living," PIDE-Working Papers 2008:46, Pakistan Institute of Development Economics.
  3. Yusuf , Shahid & Nabeshima, Kaoru, 2009. "Can Malaysia escape the middle-income Trap ? a strategy for Penang," Policy Research Working Paper Series 4971, The World Bank.
  4. Gilles Duranton, 2007. "From cities to productivity and growth in developing countries," Working Papers tecipa-306, University of Toronto, Department of Economics.
  5. Steven Poelhekke & Frederick Van der Ploeg, 2008. "Globalization and the Rise of Mega-Cities in the Developing World," CESifo Working Paper Series 2208, CESifo Group Munich.
  6. Rosella Nicolini, 2008. "Agglomeration and inequality across space: What can we learn from the European experience?," Working Papers wpdea0809, Department of Applied Economics at Universitat Autonoma of Barcelona.
  7. Richard Florida & Tim Gulden & Charlotta Mellander, 2008. "The rise of the mega-region," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 459-476.
  8. Matuschke, Ira, 2009. "Rapid Urbanization and Food Security: Using Food Density Maps to Identify Future Food Security Hotspots," 2009 Conference, August 16-22, 2009, Beijing, China 51643, International Association of Agricultural Economists.

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