Does Urbanization Affect Rural Poverty? Evidence from Indian Districts

Bibliographic Data

ID19909896
AuthorsMassimiliano Calì (0000-0001-8713-1561), Carlo Menon (0000-0002-2309-9977)
Year2013
Publication date2013-01-01
Open AccessYes
TypeBOOK
PublisherWorld Bank, Washington, DC (PUBLISHER)
DOI10.1596/1813-9450-6338
OpenAlexW4247122147
LanguageEN
Citations received2
References cited17

Although a high rate of urbanization and a high incidence of rural poverty are two distinct features of many developing countries, there is little knowledge of the effects of the former on the latter. Using a large sample of Indian districts from the 1983-1999 period, the authors find that urbanization has a substantial and systematic poverty-reducing effect in the surrounding rural areas. The results obtained through an instrumental variable estimation suggest that this effect is causal in nature and is largely attributable to the positive spillovers of urbanization on the rural economy rather than to the movement of the rural poor to urban areas. This rural poverty-reducing effect of urbanization is primarily explained by increased demand for local agricultural products and, to a lesser extent, by urban-rural remittances, the rural land/population ratio, and rural nonfarm employment

Affect (linguistics) · Development economics · Economic growth · Economics · Geography · Poverty · Rural poverty · Socioeconomics · Sociology · Urbanization · COVID-19 Pandemic Impacts · Income, Poverty, and Inequality · Social and Economic Development in India

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