Journal
JOURNAL OF URBAN ECONOMICS
Volume 71, Issue 1, Pages 26-36Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
DOI: 10.1016/j.jue.2011.08.004
Keywords
Economic growth; Sectoral shocks; Urbanization
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This paper uses variations in international commodity prices and rainfall to construct instrumental variables estimates of the within-country effect that changes in the size of the agricultural sector and GDP per capita growth have on the urbanization rate. For a panel of 41 African countries during the period 1960-2007, the paper's three main findings are that: (i) decreases in the share of agricultural value added lead to a significant increase in the urbanization rate; (ii) conditional on changes in the share of agricultural value added GDP per capita growth does not significantly affect the urbanization rate; (iii) increases in the urbanization rate had a significant negative average effect on GDP per capita growth. (C) 2011 Elsevier Inc. All rights reserved.
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