Resource information
In the past dozen years, a literature
has developed arguing that urbanization has unfolded
differently in post-independence Sub-Saharan Africa than in
the rest of the developing world, with implications for
African economic growth overall. While African countries are
more urbanized than other countries at comparable levels of
income, it is well-recognized that total and sector gross
domestic product data are of very low quality, especially in
Africa. When instead viewed from the perspective of
effective technology, as suggested in endogenous growth
frameworks (and as proxied by educational attainment), the
African urbanization experience overall matches global
patterns. There are differences, however, at the sector
level. Agricultural trade effects that improve farm prices
deter African urbanization, while they promote urbanization
elsewhere. Potential reasons include differences in land
ownership institutions and the likelihood of agricultural
surpluses being invested in urban production. Positive
shocks to modern manufacturing spur urbanization in the rest
of the developing world, but effects are dependent on the
level of development. Thus many countries in Africa, with
their lower level of development, do not respond to these
shocks. Finally, historical indicators of the potential for
good institutions promote urbanization both inside and
outside Africa.