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Exploring the Trade–Urbanization Nexus in Developing Economies: Evidence and Implications

Author

Listed:
  • Zhang, Yuan

    (Asian Development Bank Institute)

  • Wan, Guanghua

    (Asian Development Bank Institute)

Abstract

Developing countries have seen a rapid rise in population urbanization in the past decades. At the same time, they have participated actively in the process of globalization. However, possible interlinks between population urbanization and trade openness in developing economies have been ignored by present literature. We propose a simple framework explaining the cereals trade–population urbanization nexus, showing how cereals supply constrains population urbanization and how international trade can change this constraint. Then, we present historical evidence, empirical tests, and case studies from the People’s Republic of China, and India further highlighting the critical role of cereals trade in population urbanization in developing economies. Policy suggestions that may help developing countries achieve more inclusive and sustainable urban development are discussed in the final section of this paper.

Suggested Citation

  • Zhang, Yuan & Wan, Guanghua, 2017. "Exploring the Trade–Urbanization Nexus in Developing Economies: Evidence and Implications," ADBI Working Papers 636, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0636
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    More about this item

    Keywords

    trade; urbanization; trade-urbanization nexus; trade openness; cereals trade; population; developing economies; urban development;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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