Growing through Cities in Developing Countries

This paper examines the effects of urbanization on development and growth. It begins with a labor market perspective and emphasizes the importance of agglomeration economies, both static and dynamic. It then argues that more productive jobs in cities do not exist in a void and underscores the importance of job and firm dynamics. In turn, these dynamics are shaped by the broader characteristics of urban systems. A number of conclusions are drawn. First, agglomeration effects are quantitatively important and pervasive. Second, the productive advantage of large cities is constantly eroded and must be sustained by new job creation and innovation. Third, this process of creative destruction in cities, which is fundamental for aggregate growth, is determined in part by the characteristics of urban systems and broader institutional features. The paper highlights important differences between developing countries and more advanced economies. A major challenge for developing countries is to reinforce the role of their urban systems as drivers of economic growth.

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Bibliographic Details
Main Author: Duranton, Gilles
Language:English
en_US
Published: World Bank, Washington, DC 2014-03
Subjects:ACCESSIBILITY, AGGLOMERATION BENEFITS, AGGLOMERATION ECONOMIES, CITIES, CITY POPULATION, CITY PRODUCTIVITY, CITY SIZE, CITY TRANSPORTATION, CONGESTION, COST-BENEFIT ANALYSIS, DEVELOPMENT ECONOMICS, DISPLACEMENT, DIVISION OF LABOR, DRIVERS, DRIVING, ECONOMIC ANALYSIS, ECONOMIC CENTRE, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ELASTICITIES, ELASTICITY, EMPLOYMENT GROWTH, EMPLOYMENT OPPORTUNITIES, EXTERNALITIES, HIGHWAY, HOUSING, HUMAN CAPITAL, INCOME, INDUSTRIALIZATION, INFORMAL LAND, INNOVATION, INNOVATIONS, INNOVATIVE CITIES, INTERSTATE HIGHWAY SYSTEM, INTERSTATE HIGHWAYS, JOB CREATION, LABOR LAWS, LABOR MARKET, LABOR MARKETS, LABOR MOBILITY, LABOR PRODUCTIVITY, LABOR SUPPLY, LAND MARKETS, LAND OWNERS, LARGE CITIES, LOCATION DECISIONS, MARKET FAILURES, METROPOLITAN AREAS, MINIMUM WAGE, MOBILITY, NEIGHBORHOODS, NOMINAL WAGES, OLDER WORKERS, POLITICAL ECONOMY, POLLUTION, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PUBLIC SUBSIDIES, QUALITY OF LIFE, RAIL, RAIL LINES, RAILROAD, RAILROADS, RAILWAY, RAILWAY LINES, RAILWAYS, REAL WAGES, RENTS, RESIDENTIAL LAND, RISK SHARING, ROAD, ROAD INFRASTRUCTURE, ROADS, SERVICE SECTORS, SKILLED LABOR, SKILLED WORKERS, SQUATTER SETTLEMENTS, SQUATTERS, STREET VENDORS, SUBURBS, SUPPLIERS, TAX, TAX EXEMPTIONS, TRANSPORT, TRANSPORTATION, TRANSPORTATION COSTS, TRANSPORTATION INFRASTRUCTURE, TRANSPORTATION NETWORKS, TRUE, UNEMPLOYMENT, UNEMPLOYMENT RATE, URBAN, URBAN AFFAIRS, URBAN AGGLOMERATION, URBAN AGGLOMERATION ECONOMIES, URBAN CROWDING, URBAN DEVELOPMENT, URBAN ECONOMICS, URBAN EMPLOYMENT, URBAN GOVERNANCE, URBAN GROWTH, URBAN LABOR, URBAN LAND, URBAN LIFE, URBAN POPULATION, URBAN POPULATION GROWTH, URBAN SYSTEMS, URBAN WORKERS, URBANIZATION, WAGES, WORKER PRODUCTIVITY, YOUNG WORKERS,
Online Access:http://documents.worldbank.org/curated/en/2014/03/19303506/growing-through-cities-developing-countries
https://hdl.handle.net/10986/17734
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