Does Globalization explain Urbanization in the World and in Asia?

Fabien Candau () and Elisa Dienesch

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Abstract: Does globalization influence urbanization everywhere or just in highly globalized countries? And to what extent? We propose a theoretical model to derive a micro-founded measure of globalization and we estimate a reduced form of urbanization that depends on trade integration for a panel dataset over 1962-2010. A one percent increase in the market access leads to a rise in urbanization rates of 0.56 percent in Asia and 0.44 percent in the World. The role of globalization via urbanization on Asian economic growth is also evaluated, confifirming that a part of the Asian's economic miracle' comes from labor accumulation in cities.

Date: 2013-12
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