Urbanization and Growth

Description

▪ Why is productivity higher in cities?
▪ Does urbanization cause growth or does growth cause urbanization?
▪ Do countries achieve rapid growth or high incomes
without urbanization?
▪ How can policy makers reap the benefits of urbanization without
paying too high a cost?
▪ Does supporting urbanization imply neglecting rural areas?
▪ Why do so few governments welcome urbanization?
▪ What should governments do to improve housing conditions
in cities as they urbanize?
▪ Are innovations in housing finance a blessing or a curse
for developing countries?
▪ How will governments finance the trillions of dollars of infrastructure
spending needed for cities in developing countries?
First in a series of thematic volumes, this book was prepared for the
Commission on Growth and Development to evaluate the state of
knowledge of the relationship between urbanization and economic
growth. It does not pretend to provide all the answers, but it does identify
insights and policy levers to help countries make urbanization work
as part of a national growth strategy. It examines a variety of topics: the
relevance and policy implications of recent advances in urban economics
for developing countries, the role of economic geography in global
economic trends and trade patterns, the impacts of urbanization on spatial
inequality within countries, and alternative approaches to financing
the substantial infrastructure investments required in developing-country
cities.
Written by prominent academics in their fields, Urbanization and
Growth seeks to create a better understanding of the role of urbanization
in growth and to inform policy makers tackling the formidable challenges
it poses.

Informations

• Publié par: world-bank-publications
• Publié le: 26 novembre 2008
• Nombre de lectures: 7
• EAN13: 9780821375747
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Urbanization and Growth
Michael Spence
Patricia Clarke Annez
Robert M. Buckley
EditorsUrbanization and Growth
Commission on Growth and DevelopmentUrbanization and Growth
Edited by Michael Spence, Patricia Clarke Annez,
and Robert M. Buckley
Contributions by
Michael Spence
Patricia Clarke Annez and Robert M. Buckley
Richard Arnott
Gilles Duranton
Dwight M. Jaffee
Sukkoo Kim
John M. Quigley
Anthony J. Venables
COMMISSION ON GROWTH AND DEVELOPMENT© 2009 The International Bank for Reconstruction and Development /
The World Bank
On behalf of the Commission on Growth and Development
1818 H Street NW
Washington, DC 20433
Telephone: [phone]
Internet: www.worldbank.org
www.growthcommission.org
E-mail: [e-mail]
[e-mail]
All rights reserved
1 2 3 4 12 11 10 09

This volume is a product of the Commission on Growth and
Development, which is sponsored by the following organizations:
Australian Agency for International Development (AusAID)
Dutch Ministry of Foreign Affairs
Swedish International Development Cooperation Agency (SIDA)
U.K. Department of International Development (DFID)
The William and Flora Hewlett Foundation
The World Bank Group
The fi ndings, interpretations, and conclusions expressed herein do not
necessarily refl ect the views of the sponsoring organizations or the
governments they represent.
The sponsoring organizations do not guarantee the accuracy of the data
included in this work. The boundaries, colors, denominations, and other
information shown on any map in this work do not imply any judgment
on the part of the sponsoring organizations concerning the legal status of
any territory or the endorsement or acceptance of such boundaries.
All queries on rights and licenses, including subsidiary rights, should be
addressed to the Offi ce of the Publisher, The World Bank, 1818 H Street
NW, Washington, DC 20433, USA; fax: [phone]; e-mail:
[e-mail].
ISBN: 978-0-8213-7573-0
eISBN: 978-0-8213-7574-7
DOI: 10.1596/978-0-8213-7573-0
Library of Congress Cataloging-in-Publication Data
Urbanization and growth / edited by Michael Spence, Patricia Clarke
Annez, and Robert M. Buckley.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-7573-0 — ISBN 978-0-8213-7574-7 (electronic)
1. Urban economics. 2. Urbanization—Economic aspects. 3. Cities and
towns—Growth. I. Spence, Michael. II. Annez, Patricia Clarke. III.
Buckley, Robert M.
HT321.U338 2008
330.9173’2—dc22
2008044060
Cover design: Naylor DesignContents
Preface ix
Workshop Participants xvii
Chapter Summaries xix
About the Editors and Contributors xxiii
Acknowledgments xxvii
Abbreviations xxix
1 Urbanization and Growth: Setting the Context 1
Patricia Clarke Annez and Robert M. Buckley
2 Rethinking Economic Growth in a Globalizing
World: An Economic Geography Lens 47
Anthony J. Venables
3 Are Cities Engines of Growth and Prosperity
for Developing Countries? 67
Gilles Duranton
4 Urbanization, Agglomeration, and Economic
Development 115
John M. Quigley
Contents v5 Spatial Inequality and Economic Development:
Theories, Facts, and Policies 133
Sukkoo Kim
6 Housing Policy in Developing Countries:
The Importance of the Informal Economy 167
Richard Arnott
7 The U.S. Subprime Mortgage Crisis:
Issues Raised and Lessons Learned 197
Dwight M. Jaffee
Index 237
Boxes
1.1 The Role of Finance in Cleaning Up Britain’s “Killer Cities”
in the 19th Century 10
1.2 How Baron Haussman Financed the Modernization of Paris 29
Figures
1.1 Urbanization and Per Capita GDP across Countries,
2000 (1996 dollars) 3
1.2 Urbanization and Per Capita GDP in the United States,
1880–2006 4
1.3 Urbanization and Per Capita GDP in China, 1960–2004 5
1.4 Rural Population in China and India, 1980–2006 5
1.5 Per Capita Income in China and India, 1980–2006 5
1.6 Urbanization and Per Capita GDP in Brazil, 1960–2003 6
1.7 Urbanization and Per Capita GDP in Kenya, 1960–2003 7
1.8 Urban and Rural Poverty Headcount in East Asia,
1993–2002 9
1.9 Per Capita GDP, Urban Share of Population, and Poverty
Headcount in East Asia, 1993–2002 9
1.10 Urban and Rural Poverty Headcount in Sub-Saharan
Africa, 1993–2002 9
1.11 Per Capita GDP, Urban Share of Population, and
Poverty Headcount in Sub-Saharan Africa, 1993–2002 9
1.12 Growth Rates in Agriculture, Manufacturing, and
Service Sectors in Selected High-Growth Economies 12
1.13 Income Advantages of Coastal Metropolitan Regions
in China, 2000 17
vi ContentsA2.1 Urbanization and Per Capita GDP across Countries,
1960–2000 (1996 Dollars) 37
A3.1 Poverty Headcount in Latin America and the
Caribbean, 1993–2002 39
A3.2 Poverty Headcount, Urban Share of Population, and
Per Capita GDP Indexes for Latin America and the Caribbean,
1993–2002 39
A3.3 Poverty Headcount in South Asia, 1993–2002 39
A3.4
Per Capita GDP Indexes for South Asia, 1993–2002 39
A3.5 Poverty Headcount in Europe and Central Asia,
1993–2002 40
A3.6 Poverty Headcount, Urban Share of Population, and
Per Capita GDP Indexes for Europe and Central Asia, 1993–2002 40
A3.7 Poverty Headcount in the Middle East and North
Africa, 1993–2002 40
A3.8
Per Capita GDP Indexes for the Middle East and North Africa,
1993–2002 40
2.1 GDP Per Capita and Foreign Market Access 53
2.2 Changes in World Income Distribution 56
3.1 Baseline Case for Typical City 71
3.2 Welfare Analysis 76
3.3 Primate Cities Favoritism 87
3.4 Internal Market Access 89
3.5 Harris-Todaro Migrations 92
3.6 Dual Housing Sector 95
3.7 Learning in Cities 97
3.8 Growth in Cities 101
7.1 Ratio of Mortgage Debt Outstanding to GDP 203
7.2 Subprime Mortgage Originations, Annual Volume
and Percent of Total 205
7.3 All Loans Past Due as Percentage of Category Total
Outstanding 210
7.4 Foreclosures Started during Quarter as Percent
of Category Total Outstanding 211
7.5 Loans in Foreclosure as Percent of Category Total
Outstanding 212
Contents vii7.6 Subprime Delinquency Rate 60+ Days, by Age and Year
of Origination 213
7.7 The OFHEO House Price Index, Quarterly Changes
at Annual Rates 214
7.8 Non-Mortgage, Asset-Backed Securities Outstanding 219
7.9 Securitization Rates for Mortgage Categories 220
Tables
1.1 Percentage of Annual Urban Population Growth
Attributable to Internal Migration, by Region 21
A1.1 Government Views on the Spatial Distribution
of the Population: 1976, 1986, 1996, and 2007 33
A1.2 Government Policies on Internal Migration into Urban
Agglomerations: 1976, 1986, 1996, and 2007 35
6.1 GNP Per Capita and Informal Employment by City
Development Index, 1998 168
6.2 Rates of Owner Occupancy, Unauthorized Housing,
and Squatter Housing by Country Income Group, 1990 169
7.1 Subprime Loans Originated for Home Purchase 206
7.2 Home Sales, Total and Attributable to Subprime Loans 207
7.3A Owner Occupancy Rates 208
7.3B Computing Home Purchases 209
7.4 Subprime Borrower and Subprime Loan Observable
Factors 213
viii ContentsPreface
The Commission on Growth and Development was established in April
2006 as a response to two insights: we do not talk about growth enough,
and when we do, we speak with too much confi dence. Too often, people
overlook economic growth when thinking about how to tackle the world’s
most pressing problems, such as poverty, illiteracy, income inequality,
unemployment, and pollution. At the same time, our understanding of eco-
nomic growth is less defi nitive than commonly thought—even though
advice is often given to developing countries with great confi dence. Conse-
quently, the Commission’s mandate is to “take stock of the state of theo-
retical and empirical knowledge on economic growth with a view to drawing
implications for policy for the current and next generation of policy
makers.”
To help assess the state of knowledge, the Commission invited lead-
ing academics and policy makers from around the world to a series of 12
workshops, held in 2007 and 2008 in Washington, D.C., New York, and
New Haven, and commissioned a series of thematic papers. These papers
reviewed areas such as monetary and fi scal policy, climate change, inequal-
ity, growth, and urbanization—the subject of this volume. In addition, 25
case studies were commissioned to explore the dynamics of growth in spe-
cifi c countries. Each presentation benefi ted from comments by members
of the Commission and other workshop participants from the worlds of
policy, theory, and practice.
The workshops turned out to be intense and lively affairs, lasting up to
three days. It became clear that experts do not always agree, even on issues
that are central to growth. The Commission had no wish to disguise or
gloss over these uncertainties and differences