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The result of the study shows that urbanization affects economic growth positively and significantly, the result shows a long-term balance relationship between urbanization and economic growth. Furthermore, we check the impact of urbanization on economic growth of different sectors of the economy. The results show that urbanization and GDP of agriculture sector are negatively and significantly related to each other. However there is strong positive relationship between urbanization and GDP of industrial sector, manufacture and services sectors. Overall the results indicate that urbanization is an important component of economic growth.
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