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Trade and institutions: explaining urban giants

Fabien Candau () and Tchapo Gbandi

Journal of Institutional Economics, 2019, vol. 15, issue 6, 1017-1035

Abstract: By analyzing the population growth at the top of the urban hierarchy, we test two hypotheses explaining the rise of mega-cities: trade and political institutions. We find that democratic institutions are the main factor behind the concentration of a nation's urban population in the main city. Contrary to the literature, we find that extractive institutions reduce the size of the biggest city.

Date: 2019
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