AN INFORMAL SECTOR URBANIZATION AND ECONOMIC GROWTH IN DEVELOPING NATIONS

There is some relationship exist between variables. Economics growth has negatively related with urban growth, economic growth is used as dependent variable and urban growth, trade, urban population, inflation and capital formulation is used as independent variable. Data has been has been taken from World Development Indicators for years 2000-2016. The study is based on panel data collected for 30 developing countries. In which study we use Generalized Method of Moments (GMM) technique and result show that urban growth negative impact on economic growth which is measured by GDP growth annual %.when urban growth is high then individual spend on investment, Govt. spend on infrastructure or for development in urban areas to increase his growth therefore GDP growth declined that showed negative relation among them. Urban population and Inflation has negative impact on economic growth and the other hand Trade and Gross Capital Formation has positive impact on economic growth.