Urbanization

Sibabrata Das (), Alex Mourmouras () and Peter Rangazas
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Sibabrata Das: International Monetary Fund
Alex Mourmouras: International Monetary Fund

Chapter Chapter 8 in Economic Growth and Development, 2015, pp 231-260 from Springer

Abstract: Abstract In this chapter, we study migration to the city and its effects on urbanization. In previous chapters, we studied how the structural transformationStructural transformation affects economic growth and, in particular, how migration to the modern sectorModern sector may alter private sector behavior. Here, we focus on the question of the best pace of urbanization as it relates to the allocation of rural and urban government services. Our motivation comes from the fact that the vast majority of governments around the developing world are concerned about the adequacy of public goods provision and the crowdingUrbanization crowding associated with rapid urbanization (Bloom and Khanna 2007). In this sense, the structural transformation, which generally raises economic growth, can occur too quickly. A second important issue we address is the role politics plays in exacerbating rural–urban inequalities. As first stressed by Lipton (1977), the disproportionate political power of urban interests (the “urban elite”) in some developing countries’ economic policies may distort the allocation of government services, exacerbate rural–urban inequalities, and intensify migration beyond efficient levels.

Keywords: Rural Household; Wage Inequality; Government Service; Urban Household; Urban Sector (search for similar items in EconPapers)
Date: 2015
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Chapter: Urbanization (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-319-14265-4_8

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DOI: 10.1007/978-3-319-14265-4_8

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