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Trade and Institutions: Explaining Urban Giants

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  • Fabien Candau

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

  • Tchapo Gbandi

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract

By analyzing the population growth at the top of the urban hierarchy, we test two hypothesis explaining the rise of mega-cities: trade and political institutions. We nd that democratic institutions are the main factor behind the concentration of a nation's urban population in the main city. Contrary to the literature, we nd that extractive institutions reduce the size of the biggest city.

Suggested Citation

  • Fabien Candau & Tchapo Gbandi, 2019. "Trade and Institutions: Explaining Urban Giants," Post-Print hal-02416125, HAL.
    • Handle: RePEc:hal:journl:hal-02416125
    DOI: 10.1017/S1744137419000328
    Note: View the original document on HAL open archive server: https://univ-pau.hal.science/hal-02416125
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    Cited by:

    1. Cem Karayalcin & Hakan Yilmazkuday, 2015. "Trade and Cities," The World Bank Economic Review, World Bank, vol. 29(3), pages 523-549.
    2. Tereza Nìmeèková & Arshad Hayat, 2022. "Does trade openness improve the quality of domestic institutions? Evidence from Africa," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(4), pages 881-908, December.
    3. Sałach, Katarzyna & Brzeziński, Michał, 2022. "Political connections and the super-rich in Poland," Economic Systems, Elsevier, vol. 46(4).

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    Keywords

    Democracy; Urban Primacy; Market Access;
    All these keywords.

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