Urbanisation and structural transformation
By: Guy Michaels, Ferdinand Rauch and Stephen J. Redding.
Contributors: Rauch, Ferdinand.; Redding, Stephen.; London School of Economics and Political Science. Centre for Economic Performance.
Series: CEP discussion paper -- no. 892
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2008
Place of publication: London
Language: eng
Format: Electronic resource
Description: This paper presents new evidence on urbanization using sub-county data for the United States  from 1880-2000 and municipality data for Brazil from 1970-2000. We show that the two central stylized features of population growth for cities -- Gibrat's Law and a stable population distribution - are strongly rejected when both rural and urban areas are considered. Population growth exhibits a U-shaped relationship with initial population density, and only becomes uncorrelated with initial population density at the high densities found in predominantly urban areas. We provide evidence that the explanation for these patterns lies in different employment growth dynamics in the agricultural and non-agricultural sectors and the process of structural transformation away from the agricultural sector.
Notes: Title from PDF file (viewed on Dec. 5, 2008).

"October 2008."

Includes bibliographical references.

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