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Viewpoint: From cities to productivity and growth in developing countries

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Abstract:

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.

Keywords: O18; R11

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1540-5982.2008.00482.x

Affiliations: Department of Economics, University of Toronto

Publication date: August 1, 2008

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