This paper was written while Charlotte Opal was a summer intern at the World Bank We are grateful to Vernon Henderson for the use of his data base and for his suggestions; to Bill Easterly and the participants of the macro brownbag lunch seminar at the World Bank for their comments; and to Christine Kessides for her support and interest. All remaining errors are ours. This research was supported by the Transport, Water, and Urban Division of the World Bank. 1
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