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Do macroeconomic factors promote urbanization? Evidence from BRICS countries

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  • Sabyasachi Tripathi

    (National Research University Higher School of Economics
    Adamas University)

Abstract

Macroeconomic factors linking urban policies are missing in fast-growing Brazil, Russia, India, China, and South Africa (BRICS) countries. In this context, we assess the impact of macroeconomic factors on urbanization that is measured by the size, growth, and density of urban populations. In this paper, we estimate the dynamic panel data models for the period of 1960–2015 with a 5-year interval data by considering BRICS countries. Our analysis suggests that to increase the percentage of urbanization foreign direct investment, gross domestic product (GDP), exports and imports of goods and services, broad money, inflation, employment in industry and services, the population aged 15–64 years, and use of energy are very important. However, the GDP growth rate and gross capital formation matter for increasing the size and growth rate of the urban populations. Finally, we suggest that to make urban policies more effective and instrumental to higher economic development, macroeconomic factors must be linked with regular urban policies.

Suggested Citation

  • Sabyasachi Tripathi, 2021. "Do macroeconomic factors promote urbanization? Evidence from BRICS countries," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 397-426, June.
    • Handle: RePEc:spr:apjors:v:5:y:2021:i:2:d:10.1007_s41685-020-00179-z
    DOI: 10.1007/s41685-020-00179-z
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