Why is the rate of urbanization higher in developing countries?

Because in developing countries there is larger economic difference between rural and urban areas. Because cities start to develop infrastructure first.

If I wanted to build a factory that produces large machines in Kenya, I’d have to go near Mombasa or Nairobi, because those cities have airports, paved roads and probably train stations so I can transport the machines that I produce. If I build my factory in a village that has only a mud road, I cannot reliably bring my machines to my customers. And also my workers have to be able to commute to work. So if I build my factory near a large town, there will be public transports. Rural areas in Kenya don’t have daily public transport, so if I build the factory in the countryside I would also have to build a new settlement for my factory workers. If my factory needs electricity, I can just get a contract with the cities electricity works. If I go to rural areas, I might have to build my own power plant, because even if there is electricity it might be insufficient power to run a factory.

So, whoever starts a business in a country like that goes near the cities. For obvious reasons.

And then, what do people do when there is a place in their country that has got a lot more economy than all the other places? That’s right. They move there in order to find a good job and make a good living.

Now try the same in a developed counts. Say… France. Okay, I want to build a factory that produces large machines in France. I can go basically anywhere. There are towns with potential workers and public transports everywhere, trucks can go to every town or village. There are train stations all over the country, there are a several cities with international airports. I can get sufficient electricity everywhere. All I have to do is find affordable real estate. Which, I assume, is more difficult in France than in Kenya.

Now while some people might still move if I give them a job - in order to live closer to my factory - that doesn’t make a big difference in urbanization. Because my factory doesn’t have to be near a city.