Cities, Territories, and Inclusive Growth: Unraveling Urban–Rural Linkages in Chile, Colombia, and Mexico

We explore the effects of the growing urbanization of rural areas in Chile, Colombia, and Mexico and investigate whether the presence of small- and medium-sized cities within rural–urban territories enhances economic growth and reduces poverty and income inequality compared to deep-rural and metropolitan territories. For Chile and Colombia, our results suggest that these urban centers can make a greater contribution to the rate of economic growth and poverty reduction in rural–urban territories compared to deep-rural ones, but in some cases with a rise in income inequality. The mechanisms through which urban centers affect the dynamics of territorial development are country-specific.