Diminishing Marginal Productivity in Action

Once a source of economic dynamism, Latin American megacities risk becoming a drag on growth. Congestion, housing shortages, lawlessness, pollution and a lack of urban planning are contributing to a sharp slowdown in productivity in many LatAm economies, undermining the potential to enjoy economies of scale.

Productivity in Latin America: City limits”, The Economist, 13 August 2011
Building globally competitive cities: The Key to Latin American Growth”, McKinsey Global Institute, 2011

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