Growing through Cities in Developing Countries

This paper examines the effects of urbanization on development and growth. It begins with a labor market perspective and emphasizes the importance of agglomeration economies, both static and dynamic. It then argues that more productive jobs in cities do not exist in a void and underscores the import...

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Main Author:	Duranton, Gilles
Format:	Journal Article
Language:	en_US
Published:	Oxford University Press on behalf of the World Bank 2016
Subjects:	cities city size city productivity economic development innovative cities industrialization transportation infrastructure unemployment urban development urban governance urban growth urban life urban population urbanization
Online Access:	http://hdl.handle.net/10986/24808

id	okr-10986-24808
recordtype	oai_dc
spelling	okr-10986-248082021-04-23T14:04:27Z Growing through Cities in Developing Countries Duranton, Gilles cities city size city productivity economic development innovative cities industrialization transportation infrastructure unemployment urban development urban governance urban growth urban life urban population urbanization This paper examines the effects of urbanization on development and growth. It begins with a labor market perspective and emphasizes the importance of agglomeration economies, both static and dynamic. It then argues that more productive jobs in cities do not exist in a void and underscores the importance of job and firm dynamics. In turn, these dynamics are shaped by the broader characteristics of urban systems. A number of conclusions are drawn. First, agglomeration effects are quantitatively important and pervasive. Second, the productive advantage of large cities is constantly eroded and must be sustained by new job creation and innovation. Third, this process of creative destruction in cities, which is fundamental for aggregate growth, is determined in part by the characteristics of urban systems and broader institutional features. We highlight important differences between developing countries and more advanced economies. A major challenge for developing countries is to reinforce the role of their urban systems as drivers of economic growth. 2016-08-04T19:22:44Z 2016-08-04T19:22:44Z 2015-02 Journal Article World Bank Research Observer 1564-6971 http://hdl.handle.net/10986/24808 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	cities city size city productivity economic development innovative cities industrialization transportation infrastructure unemployment urban development urban governance urban growth urban life urban population urbanization
spellingShingle	cities city size city productivity economic development innovative cities industrialization transportation infrastructure unemployment urban development urban governance urban growth urban life urban population urbanization Duranton, Gilles Growing through Cities in Developing Countries
description	This paper examines the effects of urbanization on development and growth. It begins with a labor market perspective and emphasizes the importance of agglomeration economies, both static and dynamic. It then argues that more productive jobs in cities do not exist in a void and underscores the importance of job and firm dynamics. In turn, these dynamics are shaped by the broader characteristics of urban systems. A number of conclusions are drawn. First, agglomeration effects are quantitatively important and pervasive. Second, the productive advantage of large cities is constantly eroded and must be sustained by new job creation and innovation. Third, this process of creative destruction in cities, which is fundamental for aggregate growth, is determined in part by the characteristics of urban systems and broader institutional features. We highlight important differences between developing countries and more advanced economies. A major challenge for developing countries is to reinforce the role of their urban systems as drivers of economic growth.
format	Journal Article
author	Duranton, Gilles
author_facet	Duranton, Gilles
author_sort	Duranton, Gilles
title	Growing through Cities in Developing Countries
title_short	Growing through Cities in Developing Countries
title_full	Growing through Cities in Developing Countries
title_fullStr	Growing through Cities in Developing Countries
title_full_unstemmed	Growing through Cities in Developing Countries
title_sort	growing through cities in developing countries
publisher	Oxford University Press on behalf of the World Bank
publishDate	2016
url	http://hdl.handle.net/10986/24808
_version_	1764457703800832000

Growing through Cities in Developing Countries

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