Urban Development Theory, Fact, and Illusion

This in-depth study of the economics of urbanization and developmentexplores the key characteristics of urban-rural patterns of production andconsumption in developing countries--particularly Brazil, China, and India--aswell as government policies affecting urbanization. Drawing on a wealth oftheoretical and empirical research, Henderson investigates rural-urbanmigration, changes in the production patterns in cities, the drain of skilledworkers from small towns, individual city restrictions on growth and entry, andother phenomena.

Introduction

3

(5)

Facts about Urban Production Patterns

8

(23)

General Production Patterns

9

(3)

Aspects of the Spatial Distribution in U.S. Production

12

(5)

Specialization and Cities in Brazil

17

(6)

Evidence from India

23

(4)

Implications of the Observed Patterns

27

(4)

Modeling the System of Cities in an Economy

31

(23)

Model of a Representative City

33

(8)

Basic Properties of a System of Cities

41

(6)

The Impact of a Shift in the Demand for Urban Exports

47

(3)

City Size and the Welfare of Capital Owners and Laborers

50

(2)

Conclusions

52

(2)

Growth, Technological Change, and Economic Development

54

(13)

Economic Growth and Technological Change

54

(7)

Economic Development

61

(4)

Conclusions

65

(2)

Trade and Natural Resources

67

(14)

The System of Cities in an Open Economy

67

(4)

Amenities and City Sizes

71

(5)

Small Economies

76

(2)

Conclusions

78

(3)

Appendix A. Conditions for Non-Specialization in Trade

79

(1)

Appendix B. Equilibrium When Cities of the Same Type Have Different Sizes

80

(1)

Evidence on the Nature of Agglomeration Effects

81

(20)

Methodology for Measuring the Nature and Extent of External Economies of Scale

83

(4)

Empirical Results

87

(10)

Conclusions

97

(4)

Appendix A. U.S. Data

99

(1)

Appendix B. Variable Definitions for Brazil

100

(1)

Population Composition of Cities: Bright Lights or Productivity

101

(36)

An Econometric Model of the Demand and Supply of Population and Population Composition for a City

103

(5)

Econometric Results: Supply Side

108

(10)

Econometric Results: The Demand Side

118

(9)

Conclusions

127

(10)

Appendix A. United States

130

(2)

Appendix B. Brazil

132

(4)

Appendix C. Formal Modeling of Skill Composition

136

(1)

Government Policies Creating Unintended Spatial Distortions

137

(14)

Trade Protection Policies

138

(2)

Minimum Wage Policies

140

(3)

Subsidies in the Public Capital Market

143

(4)

Capital Market Restrictions

147

(2)

Conclusions

149

(2)

Industrial Location Policies; Illusion and Remedy

151

(13)

Metropolitan Location of Heavy Industry

152

(4)

Deconcentration of Manufacturing into Smaller Cities

156

(6)

Conclusions

162

(2)

City Size Policies and Laissez-Faire

164

(25)

The Theoretical Foundations for Population Relocation Policies

165

(18)

Decentralization and Deconcentration Policies

183

(4)

Conclusions

187

(2)

Empirical Determinants of Urban Concentration

189

(11)

Clustering of Economic Cities into Metropolitan Areas

190

(3)

Empirical Determinants of Urban Concentration

193

(5)

Conclusions

198

(2)

Urban Issues in a Planned Economy: China

200

(23)

Geography, Urban Policy, and the Economic System

201

(4)

Industrial Location

205

(9)

Population Location

214

(7)

Conclusions

221

(2)

Conclusions

223

(12)

The Economics of Systems of Cities

224

(5)

Government and the System of Cities

229

(6)

References

235

(4)

Index

239

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Urban Development Theory, Fact, and Illusion

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Table of Contents

Supplemental Materials