Rural Urban Migration.pptx

Rural Urban Migration.pptx - Econ 207 Economic Growth and...

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Econ 207 – Economic Growth and Development 1 Lecture Note - Urbanization, Rural-Urban Migration and Economic Development Department of Economics University of Waterloo Spring 2017 1
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Introduction Developing countries tend to have two types of sectors: urban and rural. Urban sectors in the developing countries are very much like industrialized sectors within developed countries. Rural sectors are, in many ways, what makes a developing country different from a developed country. They tend to be agricultural and traditional. 2
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Introduction Rural-urban migration is one of the important dimensions of economic development. In this section, we focus on one of the most complex dilemma of development process: the phenomenon of massive and historically unprecedented movements of people from the rural countryside to the cities of Africa, Asia and Latin America. We also discuss the problems related to urbanization and migration. 3
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Introduction Key topics include Urbanization trends and projections. The role of cities. The role of formal and informal sector of the economy. The Harris–Todaro migration model. Policy options for limiting rural–urban migration. 4
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Urbanization: Trend and Projections According to United Nations estimate, in 2007, for the first time in human history, the world has became more urban than rural. There is a positive association between urbanization and per capital GDP. Generally, the more developed the country, measured by per capita income, the greater the share of population living in urban areas. 5
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Urbanization: Trend and Projections Urbanization is described using data on urban population growth of the world over the past 50 years. Urban population growth is generally far more rapid than aggregate population growth , with about half the urban growth accounted by migrants from the rural areas. Developing-country cities are growing far more rapidly than those in the developed countries. Shantytowns and similar makeshift settlements represent over one third of developing-country urban residents. 6
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Figure 7.1 Urbanization and Per Capital Income in Selected Countries 7
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Figure 7.2 Urbanization across Time and Income Levels 8
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Figure 7.3 Proportion of Urban Population by Region, 1950-2030 9
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Figure 7.4 Megacities: Cities with Ten Million or More Inhabitants 10
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Figure 7.5 Estimated and Projected Urban and Rural Population of the More and Less Developed Regions, 1950-2030 11
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Figure 7.6 Annual Growth of Urban and Slum Populations, 1990-2001 12
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The Role of Cities Agglomeration economies, Urbanization economies, Localization economies Industrial districts Efficient urban scale 13
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The Role of Cities Q: what explains the strong association between urbanization and economic growth What is the economic rationale for forming a city?
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