Publication Date
1-9-2014
Description
Economic theory suggests that Structural transformation usually takes place when resources are reallocated from low productivity agriculture to high productivity industry and services sectors. Cities and urban areas are the magnets for location of these sectors which benefit from migration of the surplus and underemployed labour. Rapid economic growth is therefore associated with urbanization. The pace of urbanization is, in turn, accelerated with a larger response of migration. Empirical evidence shows that no country has grown to middle income status without industrializing and urbanizing. None has grown to high income without vibrant cities. Between 1980 and 1998, 86 percent of the growth in value added in developing countries came from the manufacturing and services sector. Rapid productivity gains mainly reflected improvements in the industry and services. Between 1985 and 2005, the urban population in developing counties grew by more than 8.3 million a year. With falling costs of Transport and communication and a greater potential for exploiting scale economies, towns and cities have grown bigger and denser.
Recommended Citation
Husain, I. (2014). Urbanization in Pakistan. Retrieved from https://ir.iba.edu.pk/faculty-research-talks-speeches/27
Notes
Keynote address delivered at South Asia Cities Conference and Pakistan Urban Forum held at Karachi on January 9, 2014.