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Urbanization, population transition, and growth

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  • Jie Zhang

Abstract

This paper analyzes a dual economy consisting of urban market areas and less developed rural areas with or without local markets. Urban areas have better opportunities for earnings and education than rural areas. Rural families choose whether to move to urban areas at costs that differ from location to location. As per capita output grows relative to the moving cost, urbanization proceeds, leading to lower fertility, more investments in human and physical capital per child relative to output per worker, and faster economic growth. These impacts are stronger if rural areas have no access to markets. Copyright 2002, Oxford University Press.

Suggested Citation

  • Jie Zhang, 2002. "Urbanization, population transition, and growth," Oxford Economic Papers, Oxford University Press, vol. 54(1), pages 91-117, January.
  • Handle: RePEc:oup:oxecpp:v:54:y:2002:i:1:p:91-117
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