Relational pattern of urbanization and economic development: Parameter re-evaluation of the Chenery model

Abstract

Research has shown that there has been a significant change in the quantitative relationship between urbanization and economic development over the past 50 years. As a result of this change, the Chenery model is no longer capable of performing a comparative analysis of these parameters. We carried out a regression analysis of the normal form of the relation between urbanization and economic development on the basis of the Chenery model. We used empirical data from 149 countries and regions from 1990 to 2009 and adopted the double logarithmic model, introducing a time series variable for urbanization. From 1990 to 2009, with a per capita gross national income remaining between USD 1000 and 10,000, the urbanization rate changed from 17.78 to 60.36% and the relational matching data changed accordingly, although the upper limit of the rate of urbanization remained at about 75%. Urbanization in countries with a smaller population size was more affected by economic development than urbanization in countries with large and medium sized populations.