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The Imp Act of Economic, Political, and International THE IMPACT OF ECONOMIC, POLITICAL, AND INTERNATIONAL FACTORS ON URBAN PRIMACY By MOHAMMED ALWOSABI Bachelor of Arts Sana'a University Sana'a, Yemen 1985 Master of Science Oregon State University Corvallis, Oregon 1990 Submitted to the Faculty of the Graduate College of the Oklahoma State University in partial fulfillment of the requirements for the Degree of DOCTOR OF PHILOSOPHY December, 1995 THE IMPACT OF ECONOMIC, POLITICAL, AND INTERNATIONAL FACTORS ON URBAN PRIMACY Thesis Approved: ii ACKNOWLEDGMENTS Praise be to Allah the Sustainer of all the Worlds and peace and blessings upon Mohammad the last of all Prophets and Messengers, the members of his family, his companions, and all those who proceed on the path of righteousness until the Day of Judgment. First, I would like to thank my major advisor, Dr. Ronald Moomaw for all his support, advice, and encouragement. I also would like to thank the other members of my dissertation committee, Dr. Andreas Savvides for his advice and support, Dr. Odey Amos, and Dr. Mike Woods for their useful suggestions. Furthermore, I would like to thank my wife, Amatillah Alkhatib, for her encouragement, care and understanding. I appreciate her help in typing this dissertation, which saves me time and efforts. I also would like to express my sincere gratitude and love for my wonderful children, Lamise, Wella, and Omar. Their presence makes my life more enjoyable and colorful. I dedicate this work to them. I wish to express my sincere gratitude to my parents, Abdullah Mohammed and Sa'adah, my brothers and sister, and the rest of my family in Yemen for their prayers, care, and support. I thank my brother-in-law Abdusslam Aburrijal and his family for their help and support. I also thank some sincere brothers in the Islamic Societies of Stillwater and Tulsa who make this period of my life easier and memorable. I thank them for their trust, support, and brotherhood. iii TABLE OF CONTENTS Chapter •.•.•.•.•..................•..........•...............•........ ~·····················································Page I. INTRODUCTION ............•.•.......................................................•.•............................. 1 Statement of the Problem•...•...•....•.•...•••.•....•...•.•.........••••..•••....•.•...•....••.•.•••...... 1 Objectives of the Study..........•.••........•.......................................•.............•........ 6 Importance of the Study.•••••.•...•.•..••.•.•.•.••.•.•••••...••..••••••••••.•.•..•.••.•••.•...•.•...•••.•. 8 Organization of the Study.•.•.•...•••.•...••••••••.•.••.••.•.••..•.•.••.•.••••.•.••.•••••.•.•.....•.•••... 9 II. REVIEW OF LITERATURE ..••....••...•.....•.••...•....••••...••.••.••...•.•..•.•.•••.•••.•.....••....• 11 Introduction••.••...•.•.•..•••.........•...•..••.•...•....•...•••••••.•......•.••...•.•.•..•...•••.•......•....... 11 World Urbanization Trends and Prospects ....................... ~ ........................... 12 Economic Development and Urbanization Theories.................................... 17 Modernization School•...•.•.•.••.•.•.••••.•••.•...•...••.••.••••••••..•.•.•.•••.•.....•.....•. 17 Ecological Theory .••..••.•.•.•.•.... ~ •••.•••••.••...•.•..•••••••.•••••.••••.••.•••••..•.•.•.•.•••• 21 Dependency and World System School..... ~ ........................................ 23 Urban Bias Theory.•..•.•.•.•..••...•......•...•...•.•..•..•..••..•....•.. ~ ...•••..........•..... 28 Critique.•.•.•.•.••..•...•..... ·.······~··································································30 Overurbanization and Role of Cities.............................................................. 34 Equity' versus Efficiency ..••.........•.•••.•• !'·•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 38 Agglomeration Economies .•....•......•....•.•.•.••.•...•.•.•...•.•.•.•...••.•.•....•.•.•.....•.......•. 41 Summary and Conclusion .........•...............••••...........•.•••.•..••.•...•.....•••...•...•..... 44 III. OPERATIONAL DEFINITIONS .•............•.•....•...•....•.. ~ ...•..........•.•.•.•.•.....•...•..• 47 Urban Primacy................................................................................................... 4 7 Defmitions ......•.•...•.••..........•.•.•.•.•....•••......••••......•.•.•••.•.•.••..•.................. 4 7 Measures of Urban Primacy................... ~ ........................................... 49 Urban Primacy Indices ..•..•.....•..•.•.........•..•••.•.•..•...••••......•...•.....•.•....•. 50 Conclusion .•.•••••.••.••.•....•..•..• _•..•...•.•.•....•...•.•.••.••••.•.•••.....••.•••.••..•.•.......... 56 Economic Development.•.........••••...•.••.•••••••..••.•.••...•.••.•••.••.•.•.•.•.•••.•..•.....•....•.. 57 Definitions •.•.•.•••.•••.•.•....•.•.•••..•.•...••...•.•.•..•...••..•••.•.•.•.•.•..•...•.•...•.•.••...... 57 Economic Development lndicators..................................................... 59 Conclusion•..••.•.......•.•...•....••.•.•.•.••.•.•.•..••..•..••.•••.•.•.••••.•••.•.•.•.•.....•.......•. 63 iv IV. DETERMINANTS OF URBAN PRIMACY: A PANEL DATA APPROACH•...•.•.•.••...••....•...•..••••••.••.•...••.••.•..•..•....•....•.•..•. 65 Introduction ...................................................... ~················································65 Basic Model of Urban Primacy••.••..••.••••..••.......•..•.•...•.•••••.•.....•.•••............•.••.. 66 Elements of an E~onomic Mo.del ......................................................... 66 Pros and Cones of Primate Cities .•..•••.....••.•.••.•..•.•...•.•.•.••.•...•.••.•..•.•••• 69 Basic Model •.....•..•.••.••.•.••••••••..••....•..••••....•.•..••••.•.•....•.•.•.••••....•.•.•.•......•. 70 Basic Equation.•.•.•...•.•.•••••••••••••.•••.•.•••.•.••.••..•.••••.••..••.••..•.••...•.••••.•.••.•.• 72 Dependent Variable of the Basic Model........................ ,. ................................ 73 Independent Variables of the Basic Model..................................................... 73 Basic Model Variables.•.••.•.••••••.....•..••..•••...•..•..•••••.•.•.•.•.•.•.•..••.•.•.••....•• 73 Additional Variables.••..••••••.•.•.•...•.•....•••.••.•••....•.•...••.•.•.•.••..•........•..•.... 76 Econometric Approach...••...•..•.•...•....•.•...••••••.•.....•.••••••.••.•.•••.•.••••...•.......•...•.•.. 80 Data••••..•..•.•.•.....•••.••.•.•.•.•.•.•.•..•...•••.•...•.••••..••.••••..••..•...•••.•.•.....•.•.•.•...••.•.•. 80 One-Factor Fixed and Random Effects ................................................83 Fixed-Effects Model.·•••.•••.•.•.•.•.•••.•.••..•.•..••••••...••••..•.•.....•.•...••••.. 83 Random-Effects Model.•••••••.••..••...•••••.••.•.•.•.•..•.•••.•.•...•.•........•.. 84 Findings ...............................................................................................................85 Comparison of Urban Primacy Measures........................................... 85 OLS Without Country or Time Dummy Variables............................ 92 One Factor Vs. Two Factors Fixed and Random Effects Model....... 96 Other Independent Va_~iables .•.•.•.•.••.••.•..••.•.•••.••.•.•••....•.•.•.•.•.•.•••.•...... 100 Marginal Effects ofLGDP and LPOP on LUPl................................ 103 Model without Developed COuntries.............................................................. 108 Model with lagged dependent variable........................................................... 112 Determinants of LUPl at earlier points of time ............................................. 115 Summary and Conclusions ..••......•.•.•.•...••..•.•.•.•.••.••...•.•.•..•.•.•.•.•.•.•.•....•........... 117 V. DETERMINANTS OF URBAN PRIMACY: A CROSS-SECTIONAL APPROACH•.•••.•.•...•.•.•.•...•.••.•.•...•.•.......•...•...•...... 120 Introduction•..••.••.....•..•...•.....•.....•.....•...........•.•.•.•......•....•..•.•...•.•••........•.•......... 120 Dependent and Independent Variables........................................................ 121 Findings••••••..••.••....•.••••.•••.•.•.•.•••.•••.•..••..••....•.•.•••.•.•.•.•.•.••.•••.•.•.•...••....•••..••.•...•• 127 A 30· Country Model•.•.•.•••••.••••.•••.....•.••..••••.••.••.•....••••.••...•.•...•...•....•.•• 127 A 24 Country Model....•••...••.•.•.•.....•••••...•.•.•.•.•.••••.•......•...•.•...•••.••...•.•. 130 ~oncluding Remarks...•••...•••.•...•••..••..•...•...•....•.••.•.•...•..••••.••.•......•..•....•......•••. 136 V VI. URBAN PRIMACY AND SIZE OF A NATION'S LARGEST CITY............ 138 Introduction ...................................................................................................... 138 Dependent and Independent Variables ......................................................... 139 Findings ............................, ................................................................................. 140 Panel-data Analysis .. ,. ......................................................................... 140 Cross-sectional Analysis ..........................................•........................... 145 Conclusions ....................................................................................................... 148 VII. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS .................... 151 Summary.......................................................................................................... 151 Findings and Conclusions.............................................................................. 152 Recommendations .......................................................................................... 155 BIBLIOGRAPHY......................................................................................................
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