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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.

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  • 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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    Cited by:

    1. Joel M. Guttman, 2010. "Urbanization, Old-Age Security, Saving and Fertility in Developing Economies," NFI Working Papers 2010-WP-07, Indiana State University, Scott College of Business, Networks Financial Institute.
    2. Hiroshi Aiura & Yasuhiro Sato, 2014. "A model of urban demography," Canadian Journal of Economics, Canadian Economics Association, vol. 47(3), pages 981-1009, August.
    3. Haiwen Zhou, 2013. "The Choice of Technology and Rural-Urban Migration in Economic Development," Frontiers of Economics in China, Higher Education Press, vol. 8(3), pages 337-361, September.
    4. Sato, Yasuhiro, 2007. "Economic geography, fertility and migration," Journal of Urban Economics, Elsevier, vol. 61(2), pages 372-387, March.
    5. W.A. NaudÈ & W.F. Krugell, 2003. "An Inquiry into Cities and their Role in Subnational Economic Growth in South Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(4), pages 476-499, December.
    6. Grafeneder-Weissteiner, Theresa & Prettner, Klaus, 2013. "Agglomeration and demographic change," Journal of Urban Economics, Elsevier, vol. 74(C), pages 1-11.
    7. Sato, Yasuhiro & Yamamoto, Kazuhiro, 2005. "Population concentration, urbanization, and demographic transition," Journal of Urban Economics, Elsevier, vol. 58(1), pages 45-61, July.
    8. ISHIDA Ryo & OGURO Kazumasa & YASUOKA Masaya, 2015. "Population Density, Fertility, and Childcare Services from the Perspective of a Two-Region Overlapping Generations Model," Discussion papers 15093, Research Institute of Economy, Trade and Industry (RIETI).
    9. Haiwen Zhou, 2015. "Unemployment and Economic Integration for Developing Countries," Frontiers of Economics in China, Higher Education Press, vol. 10(4), pages 664-690, December.
    10. Wim Naudé, 2016. "Entrepreneurship and the Reallocation of African Farmers," Agrekon, Taylor & Francis Journals, vol. 55(1-2), pages 1-33, June.
    11. Yuhua Shi & Jie Zhang, 2009. "On high fertility rates in developing countries: birth limits, birth taxes, or education subsidies?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(3), pages 603-640, July.
    12. David E. Bloom & David Canning & Günther Fink & Tarun Khanna & Patrick Salyer, 2007. "Urban Settlement: Data, Measures, and Trends," PGDA Working Papers 2907, Program on the Global Demography of Aging.
    13. Naudé, Wim, 2017. "Cities and Entrepreneurs over Time: Like a Horse and Carriage?," IZA Discussion Papers 11195, Institute for the Study of Labor (IZA).
    14. repec:fec:journl:v:12:y:2017:i:4:p:660-676 is not listed on IDEAS
    15. Kevin Sylwester, 2008. "Foreign Aid and Urbanization in Developing Countries," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 7(2), pages 153-166, August.
    16. Bruno Chiarini & Elisabetta Marzano, 2014. "Urbanization and Growth: Why Did the Splendor of the Italian Cities in the Sixteenth Century not Lead to Transition?," CESifo Working Paper Series 5038, CESifo Group Munich.
    17. Yu Chen & Haiwen Zhou, 2017. "An Overlapping-Generations Model of Firm Heterogeneity in Economic Development," Frontiers of Economics in China, Higher Education Press, vol. 12(4), pages 660-676, December.
    18. Haiwen Zhou & Ruhai Zhou, 2016. "A Dynamic Model of the Choice of Technology in Economic Development," Frontiers of Economics in China, Higher Education Press, vol. 11(3), pages 498-518, September.
    19. Giam Cipriani, 2006. "Endogenous fertility, international migration and growth," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 53(1), pages 49-67, March.
    20. Leonid V. Azarnert, 2017. "Migration, Congestion and Growth," CESifo Working Paper Series 6508, CESifo Group Munich.
    21. E. Lance Howe & Lee Huskey & Matthew D. Berman, 2011. "Migration in Arctic Alaska: Empirical Evidence of the Stepping Stones Hypothesis," Working Papers 2011-03, University of Alaska Anchorage, Department of Economics.
    22. McDonald, Stuart & Zhang, Jie, 2012. "Income Inequality And Economic Growth With Altruistic Bequests And Human Capital Investment," Macroeconomic Dynamics, Cambridge University Press, vol. 16(S3), pages 331-354, November.
    23. Bandeira, Pablo & Sumpsi, Jose Maria, 2009. "Access to land and rural poverty in developing countries: theory and evidence from Guatemala," MPRA Paper 13365, University Library of Munich, Germany.

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