The Link between Urbanization and Economic Growth

Urbanization has been increasing day by day with the aim of benefitting the economy through urban agglomeration. Therefore, this study focuses on the link between urbanization and economic development in the world. Urbanization and economic development are studied in this paper with respect to agglomeration theory and CO2 emission. All the continents are studied with respect to these two approaches to develop a better understanding of the topic. This paper has explored the link between urbanization and economic development in each continent of the world with the help of the best examples of that region. The results of the study are (1) during the initial phase of urbanization it greatly promotes economic growth, (2) in its later phases there is impact but not as much accelerated as in the initial phase, (3) in every scenario CO2 emission is the result of urbanization because of the increased consumption of energy of fossil fuels polluting the environment, (4) urban agglomeration will only benefit if it is planned and financed properly otherwise, the result will be only urban slums and shanty, and (5) in the later phases of urbanization leaders’ are focused towards the harmful effects of CO2 emissions and minimizing them through achieving sustainability. These findings show the complex relationship between urbanization and economic growth that is affected by many other factors