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Determinants of city growth in Brazil

Listed author(s):
  • Da Mata, Daniel
  • Deichmann, Uwe
  • Henderson, J. Vernon
  • Lall, Somik V.
  • Wang, Hyoung Gun

The authors examine the determinants of Brazilian city growth between 1970 and 2000. They consider a model of a city that combines aspects of standard urban economics and the new economic geography literatures. For the empirical analysis, the authors construct a dataset of 123 Brazilian agglomerations and estimate aspects of the demand and supply side, as well as a reduced form specification that describes city sizes and their growth. Their main findings are that increases in rural population supply, improvements in interregional transport connectivity, and education attainment of the labor force have strong impacts on city growth. They also find that local crime and violence, measured by homicide rates, impinge on growth. In contrast, a higher share of private sector industrial capital in the local economy stimulates growth. Using the residuals from the growth estimation, the authors also find that cities that better administer local land use and zoning laws have higher growth. Finally, their policy simulations show that diverting transport investments from large cities toward secondary cities does not provide significant gains in terms of national urban performance.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3723.

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Date of creation: 01 Sep 2005
Handle: RePEc:wbk:wbrwps:3723
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  1. Glaeser, E.L. & Scheinkman, J.A., 1993. "Economic Growth in a Cross-Section of Cities," Harvard Institute of Economic Research Working Papers 1645, Harvard - Institute of Economic Research.
  2. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117 Elsevier.
  3. Alberto Alesina & Dani Rodrik, 1991. "Distributive Politics and Economic Growth," NBER Working Papers 3668, National Bureau of Economic Research, Inc.
  4. Chun-Chung Au & J. Vernon Henderson, 2006. "Are Chinese Cities Too Small?," Review of Economic Studies, Oxford University Press, vol. 73(3), pages 549-576.
  5. Chun-Chung Au & Vernon Henderson, 2002. "How Migration Restrictions Limit Agglomeration and Productivity in China," NBER Working Papers 8707, National Bureau of Economic Research, Inc.
  6. Beeson, Patricia E. & DeJong, David N. & Troesken, Werner, 2001. "Population growth in U.S. counties, 1840-1990," Regional Science and Urban Economics, Elsevier, vol. 31(6), pages 669-699, November.
  7. Jordan Rappaport, 1999. "Why are population flows so persistent?," Research Working Paper 99-13, Federal Reserve Bank of Kansas City.
  8. repec:spo:wpecon:info:hdl:2441/10191 is not listed on IDEAS
  9. Thierry Mayer & Keith Head, 2003. "The Empirics of Agglomeration and Trade," Working Papers 2003-15, CEPII research center.
  10. Daniel da Mata & Uwe Deichmann & J. Vernon Henderson & Somik V. Lall & Hyoung G. Wang, 2015. "Examining the Growth Patterns of Brazilian Cities," Discussion Papers 0156, Instituto de Pesquisa Econômica Aplicada - IPEA.
  11. Sanders Korenman & David Neumark, 2000. "Cohort Crowding and Youth Labor Markets (A Cross-National Analysis)," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 57-106 National Bureau of Economic Research, Inc.
  12. Mauro Borges Lemos & Sueli Moro & Elenice Biazi & Marco Aurélio Crocco, 2001. "A Dinâmica Urbana das Regiões Metropolitanas Brasileiras," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 073, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  13. Thomas J. Holmes, 2005. "The Location of Sales Offices and the Attraction of Cities," Journal of Political Economy, University of Chicago Press, vol. 113(3), pages 551-581, June.
  14. repec:hoo:wpaper:e-95-4 is not listed on IDEAS
  15. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
  16. Rafael La Porta & Florencio López-de-Silanes, 1999. "The Benefits of Privatization: Evidence from Mexico," The Quarterly Journal of Economics, Oxford University Press, vol. 114(4), pages 1193-1242.
  17. David Weil, 2006. "Accounting for the Effect of Health on Economic Growth," DEGIT Conference Papers c011_031, DEGIT, Dynamics, Economic Growth, and International Trade.
  18. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
  19. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
  20. Duncan Black & Vernon Henderson, 1999. "A Theory of Urban Growth," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 252-284, April.
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