Abstract
ABSTRACTAsia is densely populated and home to most of the world's megacities. However, its urban primacy and urban concentration, especially those of developing Asia, are much lower than their counterparts in the rest of the world. This is an important puzzle that has not been addressed in the literature. Motivated by a theory of Krugman and Livas Elizondo, this paper attributes the lower urban concentration and urban primacy to higher levels of trade openness in Asia. Empirical evidences are provided using panel data from developing countries in Asia, from the rest of the developing world, and from China.
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