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Internal migration and urbanization without efficiency in developing countries: Evidence for Ecuador

Abstract:

Ecuador is experiencing an accelerated process of urbanization in recent decades, partly caused by internal migration. This has caused a development without efficiency because most of the revenue comes from primary-export activity rather than urban industrial activities. In this context, the objective of this research is to estimate the determinants of internal migration in Ecuador using discrete choice models. The results show that the labor force will not necessarily migrate by monetary factors and human capital endowments reduce the probability of migrating. A policy implication derived from this research is that internal migration can be reduced by increasing investment in education in peripheral regions and boosting rural employment.