Macroeconomic Determinants of Urbanization in Pakistan

Muhammad Afzal, Sheikh Shoaib Ahmed and Mustansar Nawaz

Growth, 2018, vol. 5, issue 1, 6-12

Abstract: Urbanization refers to the migration of rural people to urban centers in search of better jobs. Urbanization and growth go together; no country has ever reached middle-income status without a significant population shift into cities. Urbanization has strong association with unemployment, economic growth, poverty, infrastructure, crimes, health, socio-economic conditions and education. In 2050, most of the urban population of the world will be concentrated in Asia (52%) and in Africa (21%). A simple and modest model provided reasonable results. Increase in literacy is a decisive factor that has significant impact on increasing urban population. Per capita GDP growth also positively influences the urban population. Age-structure is too an important determinant of migration and urbanization. It is an open secret that generally young persons have gone abroad. Specification and diagnostics test supported the model which reveals appropriateness and statistical soundness of the model. Serious heed is paid to delimitation of cities to make them manageable and governable. Agriculture is provided sufficient resources to discourage migration to cities.

Keywords: Urbanization; Pakistan; Macroeconomic; Determinants; Migration; Unemployment. (search for similar items in EconPapers)
Date: 2018
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