Urbanization

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

Chapter 10 in Economic Growth and Development, 2018, pp 301-331 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 transformation affects economic growth and, in particular, how migration to the modern 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 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: Government Service Production; Disproportionate Political Power; Urban Bias; Urban Sector; Rural Sector (search for similar items in EconPapers)
Date: 2018
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Chapter: Urbanization (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-319-89755-4_10

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DOI: 10.1007/978-3-319-89755-4_10

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