Cities : Engines of Growth and Prosperity for Developing Countries?

This paper reviews the evidence about the effects of urbanization and cities on productivity and economic growth in developing countries using a consistent theoretical framework. Just like in developed economies, there is strong evidence that citie...

Full description

Bibliographic Details
Main Author: Duranton, Gilles
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
AIR
GDP
TAX
Online Access:http://documents.worldbank.org/curated/en/921651468149669044/Cities-engines-of-growth-and-prosperity-for-developing-countries
http://hdl.handle.net/10986/28044
Description
Summary:This paper reviews the evidence about the effects of urbanization and cities on productivity and economic growth in developing countries using a consistent theoretical framework. Just like in developed economies, there is strong evidence that cities in developing countries bolster productive efficiency. Regarding whether cities promote self-sustained growth, the evidence is suggestive but ultimately inconclusive. These findings imply that the traditional agenda of aiming to raise within-city efficiency should be continued. Furthermore, reducing the obstacles to the reallocation of factors across cities is also desirable.