Since the 1800's a higher percentage of urban residents can be attributed to the following two economic structural changes-
I) Industrial Revolution (19th CE)
II) Growth of Services (20th CE)
Many people willingly or unwillingly shift to cities for jobs, education, housing, and so on. Thus, inadequate funding and social infrastructure along with the natural population increase and the rural to urban migration have added to urbanization.
It permits external scale and scope economies, reduces transaction costs, and enables specialization among firms directing to low-cost productions. The Industrial Revolution transformed economies into large-scale industry and factories which was earlier just limited to agriculture and handicrafts.
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