Determinants of City Growth in Brazil

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 agglomeratio...

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Bibliographic Details
Main Authors:	da Mata, Daniel, Deichmann, Uwe, Henderson, J. Vernon, Lall, Somik V., Wang, Hyoung Gun
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AUTOCOVARIANCE AUTONOMY BIG CITIES CAPITAL ACCUMULATION CAPITAL CITIES CAPITAL STOCK CAPITALS CITIES CITY POLICIES CITY POPULATION CITY PRODUCTIVITY CITY SIZE CITY TRANSPORT COMPETITIVENESS CROSS COUNTRY DEBT DECENTRALIZATION DECISION MAKING DEMAND CURVE DETERMINANTS OF GROWTH DEVELOPING COUNTRIES DEVELOPMENT RESEARCH DYNAMIC ADJUSTMENT ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC STRUCTURE ECONOMIC STUDIES EDUCATION LEVEL EDUCATIONAL ATTAINMENT ELASTICITY ERROR TERMS ESTIMATED COEFFICIENT ESTIMATION RESULTS EXTERNALITY GDP GOVERNMENT EXPENDITURE GOVERNMENT EXPENDITURES GROWTH EQUATION GROWTH LITERATURE GROWTH MODELS GROWTH RATE GROWTH RATES GROWTH RESIDUALS GROWTH RESULTS HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME GROWTH INCOME PER CAPITA INEFFICIENCY INFRASTRUCTURE INVESTMENT LABOR FORCE LABOR MARKET LABOR MARKETS LABOR SUPPLY LAND USE LARGE CITIES LAWS LOCAL GOVERNMENT LOCAL GOVERNMENTS LONG RUN MACROECONOMICS MARGINAL PRODUCTIVITY MEAN VALUE METROPOLITAN AREAS MIGRATION MONETARY ECONOMICS MONOPOLISTIC COMPETITION MUNICIPALITIES NASH EQUILIBRIUM NATIONAL OUTPUT NEGATIVE EFFECT NEGATIVE EXTERNALITIES NEGATIVE IMPACT NET OUTPUT POLICY CIRCLES POLICY DEBATE POLICY INTERVENTIONS POLICY MAKERS POLICY RESEARCH PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SERVICES REAL INCOMES REDUCED FORM EQUATION RELATIVE CONTRIBUTION RURAL AREAS SCALE EFFECTS SECONDARY CITIES SERVICE DELIVERY SIGNIFICANT REDUCTION SKILLED WORKERS STANDARD DEVIATION STATE ENTERPRISES SUPPLY CURVE SUPPLY CURVES TELECOMMUNICATIONS TRANSPORTATION INFRASTRUCTURE UNEMPLOYMENT URBAN AGGLOMERATION URBAN AGGLOMERATIONS URBAN AREAS URBAN COMPETITIVENESS URBAN ECONOMICS URBAN GROWTH URBAN LIVING URBAN POPULATION URBAN STRATEGY URBANIZATION UTILITIES UTILITY FUNCTION WAGE RATES WAGES
Online Access:	http://documents.worldbank.org/curated/en/2005/09/6297437/determinants-city-growth-brazil http://hdl.handle.net/10986/8260

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Summary:	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.

Determinants of City Growth in Brazil

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