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. Just like 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.

Authors and Publishers

Author(s), editor(s), contributor(s)
Duranton, Gilles

Resource information

Date of publication
December 2008
Resource Language
ISBN / Resource ID
handle:10986/28044
License of the resource
Copyright details
World Bank