IDEAS home Printed from https://ideas.repec.org/a/eee/juecon/v98y2017icp158-173.html
   My bibliography  Save this article

Malthus living in a slum: Urban concentration, infrastructure and economic growth

Author

Listed:
  • Castells-Quintana, David

Abstract

The link between urban concentration (primacy) and economic growth at country level is not straightforward, as there are benefits as well as costs associated with urban primacy. Recent empirical evidence suggests a differential negative effect of concentration in Sub-Saharan Africa compared to the rest of the world. This paper revisits the literature on urban concentration and economic growth to shed some light on these recent results. The main contribution of the paper is to show how differentiated effects of urban primacy on economic growth can be accounted for by considering a role for the quality of the urban environment (in terms of urban infrastructure). The role of urban infrastructure is found to be robust to a long list of controls, different specifications, different estimation techniques, and potential bias from simultaneity and measurement error.

Suggested Citation

  • Castells-Quintana, David, 2017. "Malthus living in a slum: Urban concentration, infrastructure and economic growth," Journal of Urban Economics, Elsevier, vol. 98(C), pages 158-173.
    • Handle: RePEc:eee:juecon:v:98:y:2017:i:c:p:158-173
    DOI: 10.1016/j.jue.2016.02.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0094119016000115
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jue.2016.02.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Khalid Sekkat, 2013. "Does Infrastructure Mitigate the Effect of Urban Concentration on Poverty in Developing Countries?," Working Papers 800, Economic Research Forum, revised Nov 2013.
    2. Kristian Behrens & Alain Pholo Bala, 2013. "Do rent-seeking and interregional transfers contribute to urban primacy in Sub-Saharan Africa?," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 163-195, March.
    3. Ottaviano, Gianmarco & Thisse, Jacques-Francois, 2004. "Agglomeration and economic geography," 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 58, pages 2563-2608, Elsevier.
    4. Quamrul Ashraf & Oded Galor, 2011. "Dynamics and Stagnation in the Malthusian Epoch," American Economic Review, American Economic Association, vol. 101(5), pages 2003-2041, August.
    5. Durlauf, Steven N. & Johnson, Paul A. & Temple, Jonathan R.W., 2005. "Growth Econometrics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.),Handbook of Economic Growth, edition 1, volume 1, chapter 8, pages 555-677, Elsevier.
    6. David Castells-Quintana & Vicente Royuela, 2014. "Agglomeration, inequality and economic growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 343-366, March.
    7. Barrios, Salvador & Bertinelli, Luisito & Strobl, Eric, 2006. "Climatic change and rural-urban migration: The case of sub-Saharan Africa," Journal of Urban Economics, Elsevier, vol. 60(3), pages 357-371, November.
    8. David N. Weil & Joshua Wilde, 2009. "How Relevant Is Malthus for Economic Development Today?," American Economic Review, American Economic Association, vol. 99(2), pages 255-260, May.
    9. Vicente Royuela & Jordi Suriñach, 2005. "Quality of life and urban size," ERSA conference papers ersa05p519, European Regional Science Association.
    10. Roberta Capello & Roberto Camagni, 2000. "Beyond Optimal City Size: An Evaluation of Alternative Urban Growth Patterns," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1479-1496, August.
    11. Nuno Carlos LEITÃO, 2013. "A Panel Data Modelling Of Agglomeration And Growth: Cross-Country Evidence," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 8(1), pages 67-77, February.
    12. Anthony Mveyange, 2015. "Night lights and regional income inequality in Africa," WIDER Working Paper Series 085, World Institute for Development Economic Research (UNU-WIDER).
    13. Markus Brückner, 2013. "On the simultaneity problem in the aid and growth debate," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(1), pages 126-150, January.
    14. Markus Brückner & Antonio Ciccone, 2011. "Rain and the Democratic Window of Opportunity," Econometrica, Econometric Society, vol. 79(3), pages 923-947, May.
    15. Bertinelli, Luisito & Black, Duncan, 2004. "Urbanization and growth," Journal of Urban Economics, Elsevier, vol. 56(1), pages 80-96, July.
    16. Davis, James C. & Henderson, J. Vernon, 2003. "Evidence on the political economy of the urbanization process," Journal of Urban Economics, Elsevier, vol. 53(1), pages 98-125, January.
    17. Douglas Gollin & Remi Jedwab & Dietrich Vollrath, 2016. "Urbanization with and without industrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 35-70, March.
    18. Henderson, J V, 1974. "Optimum City Size: The External Diseconomy Question," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 373-388, Part I, M.
    19. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    20. Luisito Bertinelli & Eric Strobl, 2007. "Urbanisation, Urban Concentration and Economic Development," Urban Studies, Urban Studies Journal Limited, vol. 44(13), pages 2499-2510, December.
    21. Jonathan Temple, 2005. "Dual Economy Models: A Primer For Growth Economists," Manchester School, University of Manchester, vol. 73(4), pages 435-478, July.
    22. Stephane Straub, 2011. "Infrastructure and Development: A Critical Appraisal of the Macro-level Literature," Journal of Development Studies, Taylor & Francis Journals, vol. 47(5), pages 683-708.
    23. Blane D. Lewis, 2014. "Urbanization and Economic Growth in Indonesia: Good News, Bad News and (Possible) Local Government Mitigation," Regional Studies, Taylor & Francis Journals, vol. 48(1), pages 192-207, January.
    24. Gilles Duranton & Diego Puga, 2000. "Diversity and Specialisation in Cities: Why, Where and When Does it Matter?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 533-555, March.
    25. Fabrizio Barca & Philip McCann & Andrés Rodríguez‐Pose, 2012. "The Case For Regional Development Intervention: Place‐Based Versus Place‐Neutral Approaches," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 134-152, February.
    26. Melvin Ayogu, 0. "Infrastructure and Economic Development in Africa: A Review-super- †," Journal of African Economies, Centre for the Study of African Economies, vol. 16(suppl_1), pages -126.
    27. Musayev, Vusal, 2014. "Commodity Price Shocks, Conflict and Growth: The Role of Institutional Quality and Political Violence," MPRA Paper 59786, University Library of Munich, Germany.
    28. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    29. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    30. Markus Bruckner & Antonio Ciccone, 2010. "International Commodities Prices, Growth and the Outbreak of Civil War in Sub-Saharan Africa," Working Papers 1008, BBVA Bank, Economic Research Department.
    31. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    32. Benjamin Marx & Thomas Stoker & Tavneet Suri, 2013. "The Economics of Slums in the Developing World," Journal of Economic Perspectives, American Economic Association, vol. 27(4), pages 187-210, Fall.
    33. Jedwab,Remi Camille & Christiaensen,Luc & Gindelsky,Marina, 2015. "Demography, urbanization and development : rural push, urban pull and... urban push ?," Policy Research Working Paper Series 7333, The World Bank.
    34. David E. Bloom & David Canning & Günther Fink, 2008. "Urbanization and the Wealth of Nations," PGDA Working Papers 3008, Program on the Global Demography of Aging.
    35. 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.
    36. Xavier Sala-I-Martin & Gernot Doppelhofer & Ronald I. Miller, 2004. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," American Economic Review, American Economic Association, vol. 94(4), pages 813-835, September.
    37. Michael Spence & Patricia Clarke Annez & Robert M. Buckley, 2009. "Urbanization and Growth : Commission on Growth and Development," World Bank Publications - Books, The World Bank Group, number 2582.
    38. World Bank, 2011. "World Development Report 2011 [Rapport sur le développement dans le monde 2011 : Conflits, sécurité et développement - Abrégé]," World Bank Publications - Books, The World Bank Group, number 4389.
    39. Mills, Edwin S & Ferranti, David M, 1971. "Market Choices and Optimum City Size," American Economic Review, American Economic Association, vol. 61(2), pages 340-345, May.
    40. Henderson, J. Vernon & Storeygard, Adam & Deichmann, Uwe, 2014. "50 years of urbanization in Africa : examining the role of climate change," Policy Research Working Paper Series 6925, The World Bank.
    41. Brülhart, Marius & Sbergami, Federica, 2009. "Agglomeration and growth: Cross-country evidence," Journal of Urban Economics, Elsevier, vol. 65(1), pages 48-63, January.
    42. Samuel Bazzi & Christopher Blattman, 2014. "Economic Shocks and Conflict: Evidence from Commodity Prices," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(4), pages 1-38, October.
    43. Harry W. Richardson, 1972. "Optimality in City Size, Systems of Cities and Urban Policy: a Sceptic's View," Urban Studies, Urban Studies Journal Limited, vol. 9(1), pages 29-48, February.
    44. Remi Jedwab & Luc Christiaensen & Marina Gindelsky, 2014. "Rural Push, Urban Pull and... Urban Push? New Historical Evidence from Developing Countries," Working Papers 2014-04, The George Washington University, Institute for International Economic Policy.
    45. Pholo Bala, Alain, 2009. "Urban concentration and economic growth: checking for specific regional effects," LIDAM Discussion Papers CORE 2009038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    46. Brückner, Markus, 2012. "Economic growth, size of the agricultural sector, and urbanization in Africa," Journal of Urban Economics, Elsevier, vol. 71(1), pages 26-36.
    47. Markus Brückner & Antonio Ciccone, 2010. "International Commodity Prices, Growth and the Outbreak of Civil War in Sub-Saharan Africa," Economic Journal, Royal Economic Society, vol. 120(544), pages 519-534, May.
    48. Roberto Camagni & Roberta Capello & Andrea Caragliu, 2013. "One or infinite optimal city sizes? In search of an equilibrium size for cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 309-341, October.
    49. Samuel Bazzi & Michael A. Clemens, 2013. "Blunt Instruments: Avoiding Common Pitfalls in Identifying the Causes of Economic Growth," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(2), pages 152-186, April.
    50. Vicente Royuela & Jordi Suriñach, 2005. "Constituents of Quality of Life and Urban Size," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 74(3), pages 549-572, December.
    51. J. Vernon Henderson, 2000. "The Effects of Urban Concentration on Economic Growth," NBER Working Papers 7503, National Bureau of Economic Research, Inc.
    52. Henderson, J. Vernon, 2005. "Urbanization and Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 24, pages 1543-1591, Elsevier.
    53. Jonathan R. W. Temple, 2005. "Growth and Wage Inequality in a Dual Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 57(2), pages 145-169, April.
    54. Henderson, Vernon, 2003. "The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
    55. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    56. Alberto F. Ades & Edward L. Glaeser, 1995. "Trade and Circuses: Explaining Urban Giants," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 195-227.
    57. Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
    58. Fay, Marianne & Opal, Charlotte, 2000. "Urbanization without growth : a not-so-uncommon phenomenon," Policy Research Working Paper Series 2412, The World Bank.
    59. Sukkoo Kim, 2008. "Spatial Inequality and Economic Development," World Bank Publications - Books, The World Bank Group, number 28050.
    60. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    61. Salvador Barrios & Luisito Bertinelli & Eric Strobl, 2010. "Trends in Rainfall and Economic Growth in Africa: A Neglected Cause of the African Growth Tragedy," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 350-366, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lopez-Uribe, Maria del Pilar & Castells-Quintana, David & McDermott, Thomas K. J., 2017. "Geography, institutions and development: a review ofthe long-run impacts of climate change," LSE Research Online Documents on Economics 65147, London School of Economics and Political Science, LSE Library.
    2. David Castells-Quintana & Vicente Royuela, 2014. "Agglomeration, inequality and economic growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 343-366, March.
    3. David Castells-Quintana & Vicente Royuela, 2018. "Spatially blind policies? Analysing agglomeration economies and European Investment Bank funding in European neighbouring countries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(3), pages 569-589, May.
    4. Brückner, Markus, 2012. "Economic growth, size of the agricultural sector, and urbanization in Africa," Journal of Urban Economics, Elsevier, vol. 71(1), pages 26-36.
    5. Gilles Duranton, 2007. "From cities to productivity and growth in developing countries," Working Papers tecipa-306, University of Toronto, Department of Economics.
    6. Frick, Susanne A. & Rodríguez-Pose, Andrés, 2018. "Change in urban concentration and economic growth," World Development, Elsevier, vol. 105(C), pages 156-170.
    7. Ebeke, Christian Hubert & Ntsama Etoundi, Sabine Mireille, 2017. "The Effects of Natural Resources on Urbanization, Concentration, and Living Standards in Africa," World Development, Elsevier, vol. 96(C), pages 408-417.
    8. Henderson, J. Vernon & Roberts, Mark & Storeygard, Adam, 2013. "Is urbanization in Sub-Saharan Africa different ?," Policy Research Working Paper Series 6481, The World Bank.
    9. David Castells & Vicente Royuela, 2012. "Agglomeration, Inequality and Economic Growth: Cross-section and panel data analysis," ERSA conference papers ersa12p492, European Regional Science Association.
    10. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    11. Brülhart, Marius & Sbergami, Federica, 2009. "Agglomeration and growth: Cross-country evidence," Journal of Urban Economics, Elsevier, vol. 65(1), pages 48-63, January.
    12. Achim Ahrens, 2015. "Civil conflicts in Africa: Climate, economic shocks, nighttime lights and spill-over effects," SEEC Discussion Papers 1501, Spatial Economics and Econometrics Centre, Heriot Watt University.
    13. Susanne A. Frick & Andrés Rodríguez-Pose, 2016. "Average city size and economic growth," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(2), pages 301-318.
    14. Altinok, Nadir & Aydemir, Abdurrahman, 2017. "Does one size fit all? The impact of cognitive skills on economic growth," Journal of Macroeconomics, Elsevier, vol. 53(C), pages 176-190.
    15. Castells-Quintana, David & Lopez-Uribe, Maria del Pilar & McDermott, Thomas K.J., 2022. "Population displacement and urban conflict: Global evidence from more than 3300 flood events," Journal of Development Economics, Elsevier, vol. 158(C).
    16. Sanghamitra Bandyopadhyay & Elliott Green, 2018. "Urbanization and mortality decline," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 483-503, March.
    17. David Castells-Quintana & Maria del Pilar Lopez-Uribe & Tom McDermott, 2015. "Climate change and the geographical and institutional drivers of economic development," GRI Working Papers 198, Grantham Research Institute on Climate Change and the Environment.
    18. Sabyasachi Tripathi, 2013. "Do Large Agglomerations Lead To Economic Growth? Evidence From Urban India," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 176-200, November.
    19. Subal C. Kumbhakar, 2017. "Do urbanization and public expenditure affect productivity growth? The case of Chinese Provinces," Indian Economic Review, Springer, vol. 52(1), pages 127-156, December.
    20. Zeira, Joseph & di Vaio, Gianfranco & Battisti, Michele, 2013. "Global Divergence in Growth Regressions," CEPR Discussion Papers 9687, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Agglomeration; Urbanisation; Urban concentration; Infrastructure; Congestion diseconomies; Growth; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juecon:v:98:y:2017:i:c:p:158-173. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622905 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.