Urbanization and economic transformation: A CGE analysis for Ethiopia
Strong economic growth in urban areas has not led to rapid urbanization in Ethiopia, possibly as a result of prevailing land tenure policies. We examine the economic implications of accelerated urbanization using a rural-urban economywide model that explicitly captures internal migration and agglome...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2011
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/152600 |
| _version_ | 1855515673543835648 |
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| author | Dorosh, Paul A. Thurlow, James |
| author_browse | Dorosh, Paul A. Thurlow, James |
| author_facet | Dorosh, Paul A. Thurlow, James |
| author_sort | Dorosh, Paul A. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Strong economic growth in urban areas has not led to rapid urbanization in Ethiopia, possibly as a result of prevailing land tenure policies. We examine the economic implications of accelerated urbanization using a rural-urban economywide model that explicitly captures internal migration and agglomeration effects. Simulation results indicate that accelerated urbanization would strengthen economic growth, improve rural welfare, and reduce the rural-urban divide. However, without supporting investments in urban areas, the welfare gains for poorer households remain small and urban inequality worsens. At the same time, while allocating more public resources to urban areas encourages economic growth, it is less likely to benefit poor households' welfare. Indeed, even though an agriculture-oriented investment plan slows economic growth, it is more effective at improving welfare for poorer households in both rural and urban areas. We conclude that combining reforms to overcome the constraints to internal migration together with increased investment in rural areas (even at the cost of urban investment) produces outcomes most conducive to future economic development and structural transformation in Ethiopia. |
| format | Artículo preliminar |
| id | CGSpace152600 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1526002025-11-06T05:16:33Z Urbanization and economic transformation: A CGE analysis for Ethiopia Dorosh, Paul A. Thurlow, James resettlement rural urban relations structural adjustment mathematical models computable general equilibrium models Strong economic growth in urban areas has not led to rapid urbanization in Ethiopia, possibly as a result of prevailing land tenure policies. We examine the economic implications of accelerated urbanization using a rural-urban economywide model that explicitly captures internal migration and agglomeration effects. Simulation results indicate that accelerated urbanization would strengthen economic growth, improve rural welfare, and reduce the rural-urban divide. However, without supporting investments in urban areas, the welfare gains for poorer households remain small and urban inequality worsens. At the same time, while allocating more public resources to urban areas encourages economic growth, it is less likely to benefit poor households' welfare. Indeed, even though an agriculture-oriented investment plan slows economic growth, it is more effective at improving welfare for poorer households in both rural and urban areas. We conclude that combining reforms to overcome the constraints to internal migration together with increased investment in rural areas (even at the cost of urban investment) produces outcomes most conducive to future economic development and structural transformation in Ethiopia. 2011 2024-10-01T13:55:00Z 2024-10-01T13:55:00Z Working Paper https://hdl.handle.net/10568/152600 en Open Access application/pdf International Food Policy Research Institute Ethiopian Development Research Institute Dorosh, Paul A.; Thurlow, James. 2011. Urbanization and economic transformation: A CGE analysis for Ethiopia. ESSP II Working Paper 14. https://hdl.handle.net/10568/152600 |
| spellingShingle | resettlement rural urban relations structural adjustment mathematical models computable general equilibrium models Dorosh, Paul A. Thurlow, James Urbanization and economic transformation: A CGE analysis for Ethiopia |
| title | Urbanization and economic transformation: A CGE analysis for Ethiopia |
| title_full | Urbanization and economic transformation: A CGE analysis for Ethiopia |
| title_fullStr | Urbanization and economic transformation: A CGE analysis for Ethiopia |
| title_full_unstemmed | Urbanization and economic transformation: A CGE analysis for Ethiopia |
| title_short | Urbanization and economic transformation: A CGE analysis for Ethiopia |
| title_sort | urbanization and economic transformation a cge analysis for ethiopia |
| topic | resettlement rural urban relations structural adjustment mathematical models computable general equilibrium models |
| url | https://hdl.handle.net/10568/152600 |
| work_keys_str_mv | AT doroshpaula urbanizationandeconomictransformationacgeanalysisforethiopia AT thurlowjames urbanizationandeconomictransformationacgeanalysisforethiopia |