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Can Cities or Towns Drive African Development? Economy-wide Analysis for Ethiopia and Uganda

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  • Paul A. Dorosh
  • James Thurlow

Abstract

Rapid urbanization is an important characteristic of African development and yet the structural transformation debate focuses on agriculture's relative merits without also considering the benefits from urban agglomeration. As a result, African governments are often provided conflicting recommendations on the importance of rural agriculture or urban industry. We develop dynamic economy-wide models for Ethiopia and Uganda that capture both traditional aspects of the debate (growth linkages and foreign trade) and benefits from urbanization (internal migration and agglomeration effects).

Suggested Citation

  • Paul A. Dorosh & James Thurlow, 2012. "Can Cities or Towns Drive African Development? Economy-wide Analysis for Ethiopia and Uganda," WIDER Working Paper Series wp-2012-050, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-050
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    Keywords

    Economic development; Gross national product; Poverty; Rural development; Urbanization;
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