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2013 | OriginalPaper | Buchkapitel

6. Concentration and Growth in Latin American Countries

verfasst von : Miguel Atienza, Patricio Aroca

Erschienen in: Regional Problems and Policies in Latin America

Verlag: Springer Berlin Heidelberg

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Abstract

Despite urbanization and recent development, many Latin American countries, such as Chile, Peru, Uruguay and Argentina, still maintain very high levels of urban primacy (United Nations 2012). Most studies about the region have analyzed economic and social problems derived from the existence of urban giants but have not considered in which ways urban primacy is currently affecting national growth. In this respect, Brülhart and Sbergami (2009) show, using a sample of 105 countries and controlling for 18 variables used in various convergence studies worldwide, that when a country achieves a GDP per capita level of $10,000 an increase in the level of urban concentration, negatively affects the national growth rate. Consequently, it is plausible that in some Latin American countries spatial concentration not only has become an equity problem but also a constraint for national efficiency whose reduction should be taken into account in development strategies.

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Vorheriges Kapitel Growth and Regional Disparities in Latin America Concentration Processes and Regional Policy Challenges

Nächstes Kapitel Urban Primacy and Regional Economic Disparities in Latin America

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In his study, Williamson (1965) refers to the evolution of per capita income inequality among different regions. His argument was later used to address inequality in the location of activities and population, particularly by Urban Economics and New Economic Geography.

This relationship has not been verified in some studies, such as Rosen and Resnick (1980), Richardson and Schwartz (1988), Mutlu (1989) and Lemelin and Polèse (1995).

Earlier studies like the one conducted by Wheaton and Shishido (1981) identified a slightly lower per capita product threshold of US$8,384.

It is important to recall the diversity that existed among Latin American nations in its urbanization process. Table 6.1 in the Appendix describes the evolution of urbanization in larger countries.

Measured as the ratio between the population of the first and second cities of the system. It is assumed that there is primacy when that ratio is greater than two. This convention is related to the expected value if a system of cities meets Zipf’s law according to which the size of the principal city is double that of the second, triple that of the third, and so on.

The differences, regarding the data, presented in Fig. 6.5, where Guatemala and Nicaragua, which show relatively low levels of primacy, may be due to the time periods analyzed by the studies gathered in Table 6.1, which frequently refer to the period between 1960 and 1995.

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Titel: Concentration and Growth in Latin American Countries
verfasst von: Miguel Atienza
Patricio Aroca
Verlag: Springer Berlin Heidelberg
Buch: Regional Problems and Policies in Latin America
Print ISBN: 978-3-642-39673-1

Electronic ISBN: 978-3-642-39674-8

Copyright-Jahr: 2013
DOI: https://doi.org/10.1007/978-3-642-39674-8_6

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