With funding from the Global Development Network and the Inter-American Development Bank, Lucas Ronconi and I have recently finished some a first cut at an analysis of land use regulations in a large number of developing countries. We have tried (and are still trying) to make use of World Bank survey data on 683 cities around the world. The abstract is below.
Abstract: Theoretical predictions of negative impacts of stringent land use regulation on urbanization outcomes have contributed to reform efforts around the world. However, there is limited empirical evidence internationally on the relationship between regulation and urbanization, especially in developing countries. In this report, we present a series of stylized facts about the prevalence, determinants and impacts of land use regulation in Asia, Latin America, and the rest of the world. In order to do this, we combine several data sources, including surveys of regulation from the World Bank, remote sensing data, and data from various countries’ censuses. The largest variation in regulations is across countries and regions rather than across continents or within countries. Economic development is negatively correlated with land use regulations, even after controlling for the general regulatory environment. Cities that are more constrained by water and mountains tend to have more regulations. Other major determinants are legal systems and urbanization pressures. Regulations are not clearly associated with measures of urban form such as population density or urban compactness, but they do seem to negatively impact business expansion and household formation.
