rural-urban dynamics_report.pdf - Khazar University

GLOBAL MONITORING REPORT 2013 MACROECONOMIC, TRADE, AND AID DEVELOPMENTS 59
as low-agglomeration (high-agglomeration)
countries. Medium-agglomeration countries
are those with an agglomeration share
between 40 percent and 64 percent. Using
the same method, countries with a per capita
income of $6,500 or lower ($27,000 or
higher) are designated as low-income (highincome)
countries. Medium-income countries
are those with a per capita income between
$6,500 and $27,000 (map 1.1).
There is a large degree of overlap between
the categorization of countries as low-,
medium-, and high-agglomeration countries
and the analytical country categorization of
low-income, emerging market, and advanced
economies (table 1.4). 10 Most low-income
countries are low-agglomeration countries
and most advanced economies are highagglomeration
economies. Among emerging
market countries about half are mediumagglomeration
countries. The correlation
between the two country classification systems
is statistically significant. 11 Per capita
income increases with the level of agglomeration
for both low-income and emerging
market countries, but the relative increases
are more pronounced for low-income countries.
Among advanced economies, there is
no “return” to agglomeration (the higher
per capita income level of the small group
of medium-agglomeration advanced economies
is because most Nordic countries are
included here). These findings suggest that
the positive correlation between agglomeration
and development is more strongly felt in
the poorer countries that are most challenged
in attaining the MDGs.
Looking at economic growth over the
last 10 years through the prism of agglomeration,
growth in medium-agglomeration
countries has outpaced that of both low- and
high-agglomeration countries (table 1.5).
Given the large degree of overlap between
countries categorized according to their level
of agglomeration or development, this is not
a surprising result (compare table 1.5 with
table 1.1 and figure 1.1).
Of more interest, therefore, is a comparison
of macroeconomic outcomes across
levels of agglomeration within different
FIGURE 1.14 Agglomeration and income distribution, 2010
Cumulative shares
1
0.8
0.6
0.4
0.2
0
0 0.2 0.4
Agglomeration a
Cumulative shares of countries
Low Medium High
Source: World Economic Outlook.
Note: The Lorenz-curves show the same colors as in Map 1.1.
a. Agglomeration shares are calculated from World Bank agglomeration index data.
b. Income is measured by GDP per capita in U.S. dollars.
geographical areas. For example, growth in
low- and medium-agglomeration emerging
market and developing countries in Europe
and Asia has been higher than growth in
TABLE 1.4 IMF and World Bank member countries:
Selected indicators, 2010
Number of countries
Lowincome
countries
Income b
0.6 0.8 1
Emerging
market
countries
Advanced
market
economies
Total
Low-agglomeration countries 44 13 0 57
Medium-agglomeration countries 20 42 9 71
High-agglomeration countries 9 28 23 60
Total 73 83 32 188
Population (in millions)
Low-agglomeration countries 710 104 0 815
Medium-agglomeration countries 525 3,917 57 4,499
High-agglomeration countries 33 477 962 1,473
Total 1,268 4,499 1,019 6,787
GDP per capita (in U.S. dollars)
Low-agglomeration countries 1,083 6,020 0 1,954
Medium-agglomeration countries 1,415 6,957 43,516 10,263
High-agglomeration countries 4,491 15,258 39,409 23,171
Total 1,608 9,984 40,529 12,306
Source: World Economic Outlook.
Note: Numbers may not add to totals because of rounding.