Lecture5 - Development Economics Lecture Notes 4 Alper...

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Development Economics Lecture Notes 4 Alper Duman April 2, 2009 Alper Duman Development Economics Lecture Notes 4
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Urbanization and Rural to Urban Migration I There is a nonlinear and positive relation between urbanization rate and GDP per capita across countries I Agglomeration of economic activities may contribute to better economic performance, but I LDCs face megacity problems I Rural to urban migration is the main factor behind the explosion of shantytowns, slums, favelas and gecekondus Alper Duman Development Economics Lecture Notes 4
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I Industrial Districts I Exploiting heterogeneity I Social Capital I Optimal size of a city I Congestion costs Alper Duman Development Economics Lecture Notes 4
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Urban Giantism Problem I First city bias, i.e. Istanbul, Mexico City, Buenos Aires I relation with political insitutions; bigger shares live in megacities if there is less democracy Alper Duman Development Economics Lecture Notes 4
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Urban Informal Sector I The informal sector constitutes a large portion of LDC economies I The informal sector is characterized by a large number of small-scale production and service activities that are
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Lecture5 - Development Economics Lecture Notes 4 Alper...

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