The Relationship Between Urbanization And Economic Development In Developing Countries

Abstract

The study of urbanization has, in recent years, gained increasing importance in developing countries not only because these countries are in the process of facing rapid urbanization, but also because the process of urbanization has been recognized as part of a larger process of economic development which is affecting developing countries. There are two-side relationships between urbanization and economic development. On the one side, it promotes economic development, while on the other side, it is an impediment to economic development of most nations. This paper correlates urbanization with economic development indicators of developing countries and concludes that there is weak relationship between urban growth and economic development in developing countries. To further the
understanding of this relationship, the study also compares the economic situation of urban and rural areas which shows that, it was better in the cities.