IDEAS home Printed from https://ideas.repec.org/a/azm/journl/v2y2023i2p113-126.html
   My bibliography  Save this article

Identifying Threshold Level of Urbanization for Economic Growth in Developing and Developed Asian Economies

Author

Listed:
  • Asjad Wajid

    (Pakistan Institute of Development Economics, Pakistan.)

  • Salita Salita

    (Pakistan Institute of Development Economics, Pakistan.)

Abstract

This study scrutinized the relationship between urbanization and economic growth in 11 developed and 23 underdeveloped Asian countries from 1998 to 2021. The study formulated dynamic and static models and employed the Fixed Effect Model and Dynamic GMM for estimation. The results of both static and dynamic models illustrated that urbanization augments growth in developed and developing countries, however, the nature of this relationship is non-linear. The study calculated the threshold level of urbanization and established that after this threshold level, the impact of urbanization on growth reverses. In the static model, developed and developing countries have thresholds of 68.08% and 53.8%, respectively. In the dynamic model, developed and developing countries maintained thresholds of 77.6% and 61.5%, respectively. The study concluded that urbanization and growth share a non-linear association in both developed and developing countries, and this relationship is not contingent upon the type of model or technique being used.

Suggested Citation

  • Asjad Wajid & Salita Salita, 2023. "Identifying Threshold Level of Urbanization for Economic Growth in Developing and Developed Asian Economies," Journal of Economic Sciences, Federal Urdu University Islamabad, Department of Economics, vol. 2(2), pages 113-126, December.
    • Handle: RePEc:azm:journl:v:2:y:2023:i:2:p:113-126
    DOI: 10.55603/jes.v2i2.a3
    as

    Download full text from publisher

    File URL: https://jesciences.com/index.php/jes/article/view/45/24
    Download Restriction: no
    File URL: https://libkey.io/10.55603/jes.v2i2.a3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Urbanization; Threshold; Economic Growth; Dynamic GMM; Fixed Effects;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:azm:journl:v:2:y:2023:i:2:p:113-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Ihtsham Ul Haq (email available below). General contact details of provider: https://www.fuuastisb.edu.pk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.