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Urbanization and Economic Development

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  • J. Vernon Henderson

Abstract

This paper provides a survey and guide to the literature relevant to urbanization and economic development. The paper starts with some basic facts and trends about urbanization worldwide. It then reviews the traditional twosector urban-rural model, but focuses on the modern version, Krugman¡¯s coreperiphery model. However, two sector models do not capture the notion of an economy composed of many cities; nor do they represent modern agglomeration economies. Models and empirical evidence on agglomeration economies are reviewed. Then the paper turns to empirical evidence on the evolution of the size distribution of cities. It reviews the large literature on systems of cities models, focusing on an endogenous growth version. This part of paper concludes with a review of recent work integrating systems of cities models with the new economic geography. The final section reviews urbanization in China, focusing on policy issues such as migration, under-agglomeration and spatial biases in the FDI policy.

Suggested Citation

  • J. Vernon Henderson, 2003. "Urbanization and Economic Development," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 275-341, November.
  • Handle: RePEc:cuf:journl:y:2003:v:4:i:2:p:275-341
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    Cited by:

    1. Arouri, Mohamed & Ben Youssef, Adel & Nguyen, Cuong, 2017. "Does urbanization reduce rural poverty? Evidence from Vietnam," Economic Modelling, Elsevier, vol. 60(C), pages 253-270.
    2. Grace Carolina Guevara Rosero, 2015. "Impact of agglomeration on the regional growth of Latin American countries," ERSA conference papers ersa15p675, European Regional Science Association.
    3. repec:eee:jcecon:v:45:y:2017:i:3:p:644-657 is not listed on IDEAS
    4. repec:gam:jsusta:v:9:y:2017:i:8:p:1407-:d:107620 is not listed on IDEAS
    5. Nguyen, Cuong, 2012. "Does Urbanization Help Poverty Reduction in Rural Areas?Evidence from a Developing Country," MPRA Paper 48660, University Library of Munich, Germany.
    6. Andre Lemelin & Fernando Rubiera-Morollón & Ana Gómez-Loscos, 2016. "Measuring Urban Agglomeration: A Refoundation of the Mean City-Population Size Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 589-612, January.
    7. Carolina Guevara, 2016. "Growth agglomeration effects in spatially interdependent Latin American regions," Working Papers 1611, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    8. Carolina Guevara, 2016. "Growth agglomeration effects in spatially interdependent Latin American regions," Working Papers halshs-01281610, HAL.

    More about this item

    Keywords

    Urbanization; China reginal development; Systems od cities;

    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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