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Urbanization and Economic Development in Sub-Saharan Africa

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  • Cham, Awa

Abstract

There is a lack of consensus on how urbanization contributes to economic development in Sub-Saharan Africa. Using a panel data of sub-Saharan African countries spanning the years 2012 - 2019, we estimate a two-way fixed effects model, and our results indicate a positive relationship between Urbanization and Economic Development. Furthermore, we also find that this effect is amplified by existing levels of basic education, contribution of the services sector to GDP, and measures of institutional quality. Our results hence provide directions for development policy in this region.

Suggested Citation

  • Cham, Awa, 2025. "Urbanization and Economic Development in Sub-Saharan Africa," MPRA Paper 127391, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:127391
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    References listed on IDEAS

    as
    1. Bertinelli, Luisito & Black, Duncan, 2004. "Urbanization and growth," Journal of Urban Economics, Elsevier, vol. 56(1), pages 80-96, July.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Luisito Bertinelli & Benteng Zou, 2008. "Does Urbanization Foster Human Capital Accumulation?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 41(2), pages 171-184, January-M.
    4. Massimiliano Calì & Carlo Menon, 2013. "Does Urbanization Affect Rural Poverty? Evidence from Indian Districts," The World Bank Economic Review, World Bank, vol. 27(2), pages 171-201.
    5. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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