Giants and midgets: The effect of public goods provision on urban population concentration

Abstract

This paper analyses explains population distribution within a system of cities with availability of public goods in the country and provides an explanation for the existence of urban giants in developing economies. The article argues that (1) differences in public goods provision cause disproportionate population growth of the primate cities; (2) better provision of public goods at the national level decreases the difference between growth rates of the primate agglomeration and the hinterland; (3) low provision of public goods at the national level leads to the emergence of urban giants. These findings are especially relevant for developing countries, where rapid urbanisation is currently taking place.