From Cities to Productivity and Growth in Developing Countries

Gilles Duranton

No 6634, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper reviews the evidence about the effects of urbanisation and cities on productivity and economic growth in developing countries using a consistent theoretical framework. Just like in developed economies, there is strong evidence that cities in developing countries bolster productive efficiency. Regarding whether cities promote self-sustained growth, the evidence is suggestive but ultimately inconclusive. These findings imply that the traditional agenda of aiming to raise within-city efficiency should be continued. Furthermore, reducing the obstacles to the reallocation of factors and activities, and more generally promoting the movement of human capital and goods across cities may have significant positive dynamic effects as well static ones.

Keywords: Cities in developing countries; Growth; Urbanisation (search for similar items in EconPapers)
JEL-codes: O18 R11 (search for similar items in EconPapers)
Date: 2008-01
New Economics Papers: this item is included in nep-dev, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (95)

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Working Paper: From cities to productivity and growth in developing countries (2007)
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