Trade and Institutions: Explaining Urban Giants
Abstract
By analyzing the population growth at the top of the urban hierarchy, we test two hypothesis explaining the rise of mega-cities: trade and political institutions. We nd that democratic institutions are the main factor behind the concentration of a nation's urban population in the main city. Contrary to the literature, we nd that extractive institutions reduce the size of the biggest city.
Domains
Economics and Finance
Origin : Files produced by the author(s)
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