Urbanisation and internal migration as drivers of economic growth in developing economies: Evidence from South Africa

Developing economies prominently highlight urbanisation and internal migration as key aspects of economic development and growth; hence, labour reallocation, structural change, and management are essential for sustainable development. Moreover, an imbalance between urbanisation and internal migration frequently results in labour market distortion and underdevelopment in rural regions. Nonetheless, an unresolved discourse persists regarding the correlation between internal migration, urbanisation, and economic growth within academic circles. It is imperative for this debate to reach a conclusion, thereby enabling academia to guide governmental recognition of the significant impact that internal migration and urbanisation exert on economic growth and development in Africa. Moreover, foreign immigration has continued to be less regulated in African nations, despite the significance of urban expansion and rural development. This study analyses the evolution and economic requirements of internal migration and urbanisation in developing economies, particularly within the African setting, referencing foundational South African studies. The research employs a conceptual framework grounded in the theoretical principles of internal migration and urbanisation in developing economies. The research indicates that effective urbanisation and the management of internal migration can sustain labour markets. If increasing internal migration and urbanisation are not well handled alongside industrial expansion, they would likely result in informal employment and heightened demand for services, adversely impacting growth. Urban employment prospects and income disparities typically serve as internal migratory pull forces, necessitating state-led urbanisation and the enhancement of governance capacity. Investment in infrastructure, innovative urban planning, and legislative reforms can effectively leverage the dynamics of internal migration and urbanisation. There is an urgent necessity for equitable and sustainable economic development that incorporates a responsive migration framework and people mobility. This work enhances the existing knowledge base by synthesising previous research on internal migration and urbanisation, while examining unrestrained population movements. Key Words: urban productivity, labour mobility, informal employment, governance constraints, urbanisation