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Urbanization and productivity at a global level: new empirical evidence for the services sector

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  • Priscila Mendez
  • Miguel Atienza
  • Félix Modrego

Abstract

Studies in developed countries show a positive relationship between urbanization and productivity; however, this is often not the case for developing countries. This is due to the absence of conditions permitting the expression of agglomeration economies, such as the lack of complementarity between city size and individuals' education, and high levels of informality. Given the increasing importance of services in terms of employment and production, this article analyzes the relationship between the rapid urbanization and tertiarization of developing countries and the productivity of the services sector. Fixed effects and dynamic panel models are estimated using data for a sample of 91 countries between 1990 and 2018. The results indicate that urbanization increases the productivity of services in developed countries but has the opposite effect in developing countries. This evidence supports the recent literature on urbanization without growth in developing countries for the case of the services sector. Los estudios realizados en los países desarrollados muestran una relación positiva entre urbanización y productividad; sin embargo, a menudo no sucede lo mismo en los países en desarrollo. Esto se debe a la ausencia de condiciones que permitan la expresión de economías de aglomeración, como la falta de complementariedad entre el tamaño de la ciudad y la educación de los individuos, y los altos niveles de informalidad. Dada la creciente importancia de los servicios en términos de empleo y producción, este artículo analiza la relación entre la rápida urbanización y terciarización de los países en desarrollo y la productividad del sector servicios. Se estimaron modelos dinámicos y de efectos fijos de datos de panel con datos de una muestra de 91 países entre 1990 y 2018. Los resultados indican que la urbanización aumenta la productividad de los servicios en los países desarrollados, pero tiene el efecto contrario en los países en desarrollo. Esta evidencia apoya la reciente bibliografía sobre urbanización sin crecimiento en los países en desarrollo para el caso del sector servicios. 先進国における研究から、都市化と生産性は正の関係があることが示されているが、発展途上国ではこれはあてはまらない場合が多い。これは、集積の経済が発生する条件が欠如している、すなわち都市の規模と個人の教育との間に補完性がない、あるいはインフォーマルな経済の割合が高いためである。本稿では、雇用と生産の観点からサービスの重要性が高まっていることを踏まえ、開発途上国の急速な都市化及びサービス経済化と、サービス部門の生産性との関連を分析する。1990~2018年における91カ国をサンプルとしたデータを用いて固定効果と動的パネルモデルを推定した。結果から、都市化は、先進国においてはサービスの生産性を向上させるが、開発途上国では逆の効果をもたらすことが示された。本研究で得られたエビデンスは、サービス部門の場合においては、開発途上国における経済成長のない都市化に関する、最近の研究を支持するものである。

Suggested Citation

  • Priscila Mendez & Miguel Atienza & Félix Modrego, 2023. "Urbanization and productivity at a global level: new empirical evidence for the services sector," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(9), pages 1981-1997, December.
  • Handle: RePEc:bla:rgscpp:v:15:y:2023:i:9:p:1981-1997
    DOI: 10.1111/rsp3.12620
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