Urbanization without Structural Transformation : Evidence from Consumption Cities in Africa ∗

@inproceedings{Jedwab2013UrbanizationWS,
  title={Urbanization without Structural Transformation : Evidence from Consumption Cities in Africa ∗},
  author={R{\'e}mi Jedwab},
  year={2013}
}
Africa has recently experienced dramatic urbanization. Standard theories of structural transformation cannot explain this result, as it was not driven by a green revolution or an industrial revolution, but by natural resource exports. I explain how the Engel curve implies that resource windfalls are disproportionately spent on urban goods and services, which gives rise to "consumption cities". I illustrate this theory using both cross-country evidence and within-country evidence from Ivory… CONTINUE READING

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