Abstract:
Urban economists have long sought to explain the relationship between urbanization levels and output. In this paper we revisit this question and look for a relationship between urbanization and growth using non- stationary panel data techniques. Our results show that a long run relationship between urbanization, output per worker and capital per worker cannot be rejected for either our sample of 30 developing countries or our sample of 22 developed countries. In addition, we estimate the long run average effects on GPDW of urbanization and capital. These results offer new insights and potential for dynamic urban models rather than the simple cross-section approach.
Keywords:Panel Time Series; City Growth (search for similar items in EconPapers) JEL-codes:C23C22R11 (search for similar items in EconPapers) New Economics Papers: this item is included in nep-env and nep-ets Date: 1998-07-02 Note: Type of Document - postscript; prepared on PC-TEX; to print on HP/PostScript; pages: 24 ; figures: none. none