The X factor in economic growth: urbanization in of itself

[potatokiosk]

So, you're saying that primarily it's a matter of diseconomies of scale that start to outweigh the economies of scale at some point? I think that makes sense, but it sounds to me as though urbanization is not the X factor that drives economic growth, it's just one of the consequences of whatever the X factor is that allows a society to take full advantage of the X factor. The X factor is ultimately responsible for increasing the economies of scale so that urbanization will be attractive.

 

[Hygro]

So, you're saying that primarily it's a matter of diseconomies of scale that start to outweigh the economies of scale at some point? I think that makes sense, but it sounds to me as though urbanization is not the X factor that drives economic growth, it's just one of the consequences of whatever the X factor is that allows a society to take full advantage of the X factor. The X factor is ultimately responsible for increasing the economies of scale so that urbanization will be attractive.

I would be inclined to take this view perhaps, except that the rate of technological change increases along with everything else. Now granted you have to be right to a point as there was effectively nil GDP per capita growth anywhere before capitalism, urban or not. But technology drives economic growth and cities ramp up the rate of technological expansion. I think that variable alone is enough to explain a lot of it.