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NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by U. Deichmann

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Working Papers

August 2005Determinants of City Growth in Brazil
with Daniel da Mata, J. Vernon Henderson, Somik V. Lall, H.G. Wang: w11585
In this paper, we examine the determinants of Brazilian city growth between 1970 and 2000. We consider a model of a city, which combines aspects of standard urban economics and the new economic geography literatures. For the empirical analysis, we constructed a dataset of 123 Brazilian agglomerations, and estimate aspects of the demand and supply side as well as a reduced form specification that describes city sizes and their growth. Our main findings are that increases in rural population supply, improvements in inter-regional transport connectivity and education attainment of the labor force have strong impacts on city growth. We also find that local crime and violence, measured by homicide rates impinge on growth. In contrast, a higher share of private sector industrial capital in the l...

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