Journal of Economic Growth

, Volume 21, Issue 1, pp 35–70 | Cite as

Urbanization with and without industrialization

Article

Abstract

We document a strong positive relationship between natural resource exports and urbanization in a sample of 116 developing nations over the period 1960–2010. In countries that are heavily dependent on resource exports, urbanization appears to be concentrated in “consumption cities” where the economies consist primarily of non-tradable services. These contrast with “production cities” that are more dependent on manufacturing in countries that have industrialized. Consumption cities in resource exporters also appear to perform worse along several measures of welfare. We offer a simple model of structural change that can explain the observed patterns of urbanization and the associated differences in city types. We note that although the development literature often assumes that urbanization is synonymous with industrialization, patterns differ markedly across developing countries. We discuss several possible implications for policy.

Keywords

Economic development Structural change Industrial revolution  Natural resource revolution Urbanization 

JEL classification

L16 N10 N90 O18 O41 R10 

Supplementary material

10887_2015_9121_MOESM1_ESM.pdf (1.7 mb)
Supplementary material 1 (pdf 1720 KB)

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Douglas Gollin
    • 1
  • Remi Jedwab
    • 2
  • Dietrich Vollrath
    • 3
  1. 1.Department of International DevelopmentUniversity of OxfordOxfordUnited Kingdom
  2. 2.Department of EconomicsGeorge Washington UniversityWashingtonUSA
  3. 3.Department of EconomicsUniversity of HoustonHoustonUSA

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