In today’s developed countries, cities are thus scattered across historically important agricultural areas; as a result, there is a relatively higher degree of spatial equality in the distribution of resources within these countries. By contrast, in today’s developing countries, cities are concentrated more on the coast where transport conditions, compared to agricultural suitability, are more favorable.
That is from Henderson, Squires, Storeygard, and Weil in the January 2018 QJE, based on light data measured by satellites. Overall, I view this regularity as a negative for the prospects for liberalism and democracy in emerging economies, as urban concentration can encourage too much rent-seeking and kleptocracy. It also reflects the truly amazing wisdom of (some of) our Founding Fathers, who saw a connection between liberty and decentralized agrarianism. It suggests a certain degree of pessimism about China’s One Belt, One Road initiative. The development of the hinterland in the United States may not be a pattern that today’s emerging economies necessarily should or could be seeking to replicate. Which makes urban economics and Henry George all the more important.