Urbanization in the Developing World: Too Early or Too Slow?
Journal of Economic Perspectives
vol. 34,
no. 3, Summer 2020
(pp. 150-73)
(Complimentary)
Abstract
We describe patterns of urbanization in the developing world and the extent to which they differ from the developed world. We consider the extent to which urbanization in the developing world can be explained by conventional models of spatial equilibrium. Despite their relative poverty, developing world cities are relatively highly productive and often provide good access to safe water, improved sanitation, schooling, and inoculations. In some parts of the world, they are home to a surprisingly small number of factory workers and a surprisingly large number of farmers. Developing world cities seem to do less well at protecting their residents from lifestyle diseases and crime, their female residents from domestic violence, and their children from illness. In thinking about these facts, we note that one strand of the literature focused on structural transformation has suggested that urbanization in the developing is occurring "too early," while another strand argues that urbanization is occurring "too slow" to be consistent with conventional models of spatial equilibrium. Despite many differences between developing and developed world cities, our new results combined with those in the literature suggest that models of spatial equilibrium can be adapted as a useful guide to understanding the urbanization process in the developing world.Citation
Henderson, J. Vernon, and Matthew A. Turner. 2020. "Urbanization in the Developing World: Too Early or Too Slow?" Journal of Economic Perspectives, 34 (3): 150-73. DOI: 10.1257/jep.34.3.150Additional Materials
JEL Classification
- E23 Macroeconomics: Production
- L60 Industry Studies: Manufacturing: General
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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