英文摘要 |
We present a simple model to show that urban concentration of developing countries reduces with foreign direct investment (FDI) if the FDI is attracted to their relatively “remote” regions; otherwise, the urban concentration increases. To reduce urban concentration, this paper suggests that developing countries better carries out some favorable policies to improve their “remote” regions’ infrastructure that makes them be more freely accessible to international markets. Thus, the FDI raises demand for local workers and then attracts migration from incumbent megacities, leading to lower urban concentration. The declining urban concentration increases labor supply by reducing commuting costs, hereby improving welfare. |