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Viewpoint: From cities to productivity and growth in developing countries

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Abstract. 

This paper reviews the evidence about the effects of urbanization and cities on productivity and economic growth in developing countries using a consistent theoretical framework. As 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 across cities is also desirable.
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Keywords: O18; R11

Document Type: Research Article

Affiliations: Department of Economics, University of Toronto

Publication date: 2008-08-01

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