Does Urbanization Affect Rural Poverty? Evidence from Indian Districts

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 t...

Full description

Bibliographic Details
Main Authors: Calì, Massimiliano, Menon, Carlo
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2013/01/17197617/urbanization-affect-rural-poverty-evidence-indian-districts
http://hdl.handle.net/10986/12162
id okr-10986-12162
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO MARKETS
ADULT POPULATION
AGRICULTURAL EMPLOYMENT
AGRICULTURAL LABORERS
AGRICULTURAL LAND
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL PRODUCTIVITY GROWTH
AGRICULTURAL PRODUCTS
AGRICULTURAL TRADE
AGRICULTURAL WAGES
AGRICULTURAL WORKERS
ARID TROPICS
CAPACITY BUILDING
CHILD LABOR
CHRONIC POVERTY
COMPARATIVE ADVANTAGE
CONSUMER PRICES
CONSUMPTION DATA
COVARIANCE MATRIX
CREDIT MARKETS
CROP PRODUCTION
CULTURAL CHANGE
DAILY WAGE
DEMAND FOR FOOD
DEPENDENT VARIABLE
DESCRIPTIVE STATISTICS
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPING REGIONS
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICIES
DEVELOPMENT POLICY
DEVELOPMENT REPORT
DISTRIBUTION FUNCTION
DIVERSIFICATION
ECONOMETRIC MODELS
ECONOMIC ACTIVITIES
ECONOMIC ACTIVITY
ECONOMIC CHANGES
ECONOMIC CONDITIONS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC POLICY
ECONOMIC REFORMS
EMPIRICAL EVIDENCE
EMPIRICAL SECTION
ESTIMATION METHOD
EXPLANATORY VARIABLES
FARM EMPLOYMENT
FARMERS
FIXED EFFECTS
FIXED EFFECTS ESTIMATION
FOOD PRODUCTS
FUTURE POPULATION
GLOBAL POVERTY
GROWTH RATE
HEADCOUNT RATIO
HIGH GROWTH
HOUSEHOLD COMPOSITION
HOUSEHOLD SURVEY
IMMIGRANT
IMMIGRANTS
IMMIGRATION
IMPLICATIONS FOR DEVELOPMENT
IMPORTANT POLICY
INCIDENCE OF POVERTY
INCOME
INCOME INEQUALITY
INDEPENDENT VARIABLE
INDUSTRIAL REVOLUTION
INDUSTRIALIZATION
INSURANCE
INTERNAL MIGRANTS
INTERNATIONAL TRADE
LABOR FORCE
LABOR MARKET
LABOR SUPPLY
LAGGED VALUES
LAND PRICES
LAND PRODUCTIVITY
LAND REFORM
LAND SUPPLY
LANDLESS HOUSEHOLDS
LEVEL OF POVERTY
MARGINAL RETURNS
MEAN VALUE
MIGRANT
MIGRATION FLOWS
MONETARY ECONOMICS
NATIONAL COUNCIL
NATIONAL LEVELS
NATURAL RESOURCES
NEGATIVE EFFECT
NUMBER OF MIGRANTS
NUMBER OF PEOPLE
NUTRITION
PER CAPITA EXPENDITURE
POLICY DISCUSSIONS
POLICY IMPLICATIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POLITICAL ECONOMY
POOR PEOPLE
POOR POPULATION
POORER PEOPLE
POPULATION AND DEVELOPMENT
POPULATION DATA
POPULATION DECREASES
POPULATION DENSITY
POPULATION DYNAMICS
POPULATION VARIABLE
POPULATION VARIABLES
POVERTY CHANGE
POVERTY DATA
POVERTY DECLINE
POVERTY DYNAMICS
POVERTY ESTIMATES
POVERTY GAP
POVERTY GAP INDEX
POVERTY IMPACT
POVERTY INCIDENCE
POVERTY LEVELS
POVERTY LINE
POVERTY LINES
POVERTY MEASURE
POVERTY PROFILE
POVERTY RATES
POVERTY REDUCING
POVERTY REDUCTION
POVERTY REDUCTION IMPACT
PRODUCTION VOLUMES
PROGRESS
PUBLIC INVESTMENT
PUBLIC POLICIES
PULL FACTORS
PUSH FACTOR
PUSH FACTORS
RATE OF GROWTH
REDUCTION IN POVERTY
REGIONAL IMPACTS
REGIONAL PERSPECTIVE
RELATIVE CONTRIBUTION
RELATIVE IMPORTANCE
REMITTANCE
REMITTANCES
RESOURCE CONSTRAINTS
RESPECT
RISK FACTORS
RURAL
RURAL AREA
RURAL AREAS
RURAL BANK
RURAL BANKS
RURAL CONSUMER
RURAL CONSUMERS
RURAL DEVELOPMENT
RURAL DISTRICT
RURAL ECONOMY
RURAL EMPLOYMENT
RURAL HOUSEHOLDS
RURAL LABOR
RURAL LINKAGE
RURAL LINKAGES
RURAL MIGRANTS
RURAL MIGRATION
RURAL PEOPLE
RURAL POLICY
RURAL POOR
RURAL POPULATION
RURAL POVERTY
RURAL POVERTY LINE
RURAL POVERTY RATE
RURAL POVERTY REDUCTION
RURAL ROADS
RURAL SCHOOLING
RURAL SECTOR
RURAL VILLAGES
RURAL WAGES
RURAL WELFARE
RURAL WORKERS
SELF-EMPLOYMENT
SERIAL CORRELATION
SIGNIFICANT EFFECT
SMALL VILLAGES
SOCIAL SCIENCE
SPATIAL SCALE
SPILLOVER
STRUCTURAL TRANSFORMATION
TRADABLE SECTORS
TRADE LIBERALIZATION
UNEQUAL DISTRIBUTION
URBAN AREAS
URBAN DWELLERS
URBAN GROWTH
URBAN MIGRATION
URBAN POOR
URBAN POPULATION
URBAN POPULATION DISTRIBUTION
URBAN POPULATION GROWTH
URBAN POPULATIONS
URBAN POVERTY
URBAN WORKERS
URBANIZATION
WATER SOURCES
WELFARE IMPACT
WORKFORCE
WORKING POPULATION
WORLD POPULATION
YOUNG ADULT
YOUNG ADULTS
spellingShingle ACCESS TO MARKETS
ADULT POPULATION
AGRICULTURAL EMPLOYMENT
AGRICULTURAL LABORERS
AGRICULTURAL LAND
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL PRODUCTIVITY GROWTH
AGRICULTURAL PRODUCTS
AGRICULTURAL TRADE
AGRICULTURAL WAGES
AGRICULTURAL WORKERS
ARID TROPICS
CAPACITY BUILDING
CHILD LABOR
CHRONIC POVERTY
COMPARATIVE ADVANTAGE
CONSUMER PRICES
CONSUMPTION DATA
COVARIANCE MATRIX
CREDIT MARKETS
CROP PRODUCTION
CULTURAL CHANGE
DAILY WAGE
DEMAND FOR FOOD
DEPENDENT VARIABLE
DESCRIPTIVE STATISTICS
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPING REGIONS
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICIES
DEVELOPMENT POLICY
DEVELOPMENT REPORT
DISTRIBUTION FUNCTION
DIVERSIFICATION
ECONOMETRIC MODELS
ECONOMIC ACTIVITIES
ECONOMIC ACTIVITY
ECONOMIC CHANGES
ECONOMIC CONDITIONS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC POLICY
ECONOMIC REFORMS
EMPIRICAL EVIDENCE
EMPIRICAL SECTION
ESTIMATION METHOD
EXPLANATORY VARIABLES
FARM EMPLOYMENT
FARMERS
FIXED EFFECTS
FIXED EFFECTS ESTIMATION
FOOD PRODUCTS
FUTURE POPULATION
GLOBAL POVERTY
GROWTH RATE
HEADCOUNT RATIO
HIGH GROWTH
HOUSEHOLD COMPOSITION
HOUSEHOLD SURVEY
IMMIGRANT
IMMIGRANTS
IMMIGRATION
IMPLICATIONS FOR DEVELOPMENT
IMPORTANT POLICY
INCIDENCE OF POVERTY
INCOME
INCOME INEQUALITY
INDEPENDENT VARIABLE
INDUSTRIAL REVOLUTION
INDUSTRIALIZATION
INSURANCE
INTERNAL MIGRANTS
INTERNATIONAL TRADE
LABOR FORCE
LABOR MARKET
LABOR SUPPLY
LAGGED VALUES
LAND PRICES
LAND PRODUCTIVITY
LAND REFORM
LAND SUPPLY
LANDLESS HOUSEHOLDS
LEVEL OF POVERTY
MARGINAL RETURNS
MEAN VALUE
MIGRANT
MIGRATION FLOWS
MONETARY ECONOMICS
NATIONAL COUNCIL
NATIONAL LEVELS
NATURAL RESOURCES
NEGATIVE EFFECT
NUMBER OF MIGRANTS
NUMBER OF PEOPLE
NUTRITION
PER CAPITA EXPENDITURE
POLICY DISCUSSIONS
POLICY IMPLICATIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POLITICAL ECONOMY
POOR PEOPLE
POOR POPULATION
POORER PEOPLE
POPULATION AND DEVELOPMENT
POPULATION DATA
POPULATION DECREASES
POPULATION DENSITY
POPULATION DYNAMICS
POPULATION VARIABLE
POPULATION VARIABLES
POVERTY CHANGE
POVERTY DATA
POVERTY DECLINE
POVERTY DYNAMICS
POVERTY ESTIMATES
POVERTY GAP
POVERTY GAP INDEX
POVERTY IMPACT
POVERTY INCIDENCE
POVERTY LEVELS
POVERTY LINE
POVERTY LINES
POVERTY MEASURE
POVERTY PROFILE
POVERTY RATES
POVERTY REDUCING
POVERTY REDUCTION
POVERTY REDUCTION IMPACT
PRODUCTION VOLUMES
PROGRESS
PUBLIC INVESTMENT
PUBLIC POLICIES
PULL FACTORS
PUSH FACTOR
PUSH FACTORS
RATE OF GROWTH
REDUCTION IN POVERTY
REGIONAL IMPACTS
REGIONAL PERSPECTIVE
RELATIVE CONTRIBUTION
RELATIVE IMPORTANCE
REMITTANCE
REMITTANCES
RESOURCE CONSTRAINTS
RESPECT
RISK FACTORS
RURAL
RURAL AREA
RURAL AREAS
RURAL BANK
RURAL BANKS
RURAL CONSUMER
RURAL CONSUMERS
RURAL DEVELOPMENT
RURAL DISTRICT
RURAL ECONOMY
RURAL EMPLOYMENT
RURAL HOUSEHOLDS
RURAL LABOR
RURAL LINKAGE
RURAL LINKAGES
RURAL MIGRANTS
RURAL MIGRATION
RURAL PEOPLE
RURAL POLICY
RURAL POOR
RURAL POPULATION
RURAL POVERTY
RURAL POVERTY LINE
RURAL POVERTY RATE
RURAL POVERTY REDUCTION
RURAL ROADS
RURAL SCHOOLING
RURAL SECTOR
RURAL VILLAGES
RURAL WAGES
RURAL WELFARE
RURAL WORKERS
SELF-EMPLOYMENT
SERIAL CORRELATION
SIGNIFICANT EFFECT
SMALL VILLAGES
SOCIAL SCIENCE
SPATIAL SCALE
SPILLOVER
STRUCTURAL TRANSFORMATION
TRADABLE SECTORS
TRADE LIBERALIZATION
UNEQUAL DISTRIBUTION
URBAN AREAS
URBAN DWELLERS
URBAN GROWTH
URBAN MIGRATION
URBAN POOR
URBAN POPULATION
URBAN POPULATION DISTRIBUTION
URBAN POPULATION GROWTH
URBAN POPULATIONS
URBAN POVERTY
URBAN WORKERS
URBANIZATION
WATER SOURCES
WELFARE IMPACT
WORKFORCE
WORKING POPULATION
WORLD POPULATION
YOUNG ADULT
YOUNG ADULTS
Calì, Massimiliano
Menon, Carlo
Does Urbanization Affect Rural Poverty? Evidence from Indian Districts
geographic_facet South Asia
India
relation Policy Research Working Paper; No. 6338
description 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.
format Publications & Research :: Policy Research Working Paper
author Calì, Massimiliano
Menon, Carlo
author_facet Calì, Massimiliano
Menon, Carlo
author_sort Calì, Massimiliano
title Does Urbanization Affect Rural Poverty? Evidence from Indian Districts
title_short Does Urbanization Affect Rural Poverty? Evidence from Indian Districts
title_full Does Urbanization Affect Rural Poverty? Evidence from Indian Districts
title_fullStr Does Urbanization Affect Rural Poverty? Evidence from Indian Districts
title_full_unstemmed Does Urbanization Affect Rural Poverty? Evidence from Indian Districts
title_sort does urbanization affect rural poverty? evidence from indian districts
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/01/17197617/urbanization-affect-rural-poverty-evidence-indian-districts
http://hdl.handle.net/10986/12162
_version_ 1764422259271794688
spelling okr-10986-121622021-04-23T14:03:06Z Does Urbanization Affect Rural Poverty? Evidence from Indian Districts Calì, Massimiliano Menon, Carlo ACCESS TO MARKETS ADULT POPULATION AGRICULTURAL EMPLOYMENT AGRICULTURAL LABORERS AGRICULTURAL LAND AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL PRODUCTS AGRICULTURAL TRADE AGRICULTURAL WAGES AGRICULTURAL WORKERS ARID TROPICS CAPACITY BUILDING CHILD LABOR CHRONIC POVERTY COMPARATIVE ADVANTAGE CONSUMER PRICES CONSUMPTION DATA COVARIANCE MATRIX CREDIT MARKETS CROP PRODUCTION CULTURAL CHANGE DAILY WAGE DEMAND FOR FOOD DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING REGIONS DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT REPORT DISTRIBUTION FUNCTION DIVERSIFICATION ECONOMETRIC MODELS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC CHANGES ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC REFORMS EMPIRICAL EVIDENCE EMPIRICAL SECTION ESTIMATION METHOD EXPLANATORY VARIABLES FARM EMPLOYMENT FARMERS FIXED EFFECTS FIXED EFFECTS ESTIMATION FOOD PRODUCTS FUTURE POPULATION GLOBAL POVERTY GROWTH RATE HEADCOUNT RATIO HIGH GROWTH HOUSEHOLD COMPOSITION HOUSEHOLD SURVEY IMMIGRANT IMMIGRANTS IMMIGRATION IMPLICATIONS FOR DEVELOPMENT IMPORTANT POLICY INCIDENCE OF POVERTY INCOME INCOME INEQUALITY INDEPENDENT VARIABLE INDUSTRIAL REVOLUTION INDUSTRIALIZATION INSURANCE INTERNAL MIGRANTS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR SUPPLY LAGGED VALUES LAND PRICES LAND PRODUCTIVITY LAND REFORM LAND SUPPLY LANDLESS HOUSEHOLDS LEVEL OF POVERTY MARGINAL RETURNS MEAN VALUE MIGRANT MIGRATION FLOWS MONETARY ECONOMICS NATIONAL COUNCIL NATIONAL LEVELS NATURAL RESOURCES NEGATIVE EFFECT NUMBER OF MIGRANTS NUMBER OF PEOPLE NUTRITION PER CAPITA EXPENDITURE POLICY DISCUSSIONS POLICY IMPLICATIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POOR PEOPLE POOR POPULATION POORER PEOPLE POPULATION AND DEVELOPMENT POPULATION DATA POPULATION DECREASES POPULATION DENSITY POPULATION DYNAMICS POPULATION VARIABLE POPULATION VARIABLES POVERTY CHANGE POVERTY DATA POVERTY DECLINE POVERTY DYNAMICS POVERTY ESTIMATES POVERTY GAP POVERTY GAP INDEX POVERTY IMPACT POVERTY INCIDENCE POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY PROFILE POVERTY RATES POVERTY REDUCING POVERTY REDUCTION POVERTY REDUCTION IMPACT PRODUCTION VOLUMES PROGRESS PUBLIC INVESTMENT PUBLIC POLICIES PULL FACTORS PUSH FACTOR PUSH FACTORS RATE OF GROWTH REDUCTION IN POVERTY REGIONAL IMPACTS REGIONAL PERSPECTIVE RELATIVE CONTRIBUTION RELATIVE IMPORTANCE REMITTANCE REMITTANCES RESOURCE CONSTRAINTS RESPECT RISK FACTORS RURAL RURAL AREA RURAL AREAS RURAL BANK RURAL BANKS RURAL CONSUMER RURAL CONSUMERS RURAL DEVELOPMENT RURAL DISTRICT RURAL ECONOMY RURAL EMPLOYMENT RURAL HOUSEHOLDS RURAL LABOR RURAL LINKAGE RURAL LINKAGES RURAL MIGRANTS RURAL MIGRATION RURAL PEOPLE RURAL POLICY RURAL POOR RURAL POPULATION RURAL POVERTY RURAL POVERTY LINE RURAL POVERTY RATE RURAL POVERTY REDUCTION RURAL ROADS RURAL SCHOOLING RURAL SECTOR RURAL VILLAGES RURAL WAGES RURAL WELFARE RURAL WORKERS SELF-EMPLOYMENT SERIAL CORRELATION SIGNIFICANT EFFECT SMALL VILLAGES SOCIAL SCIENCE SPATIAL SCALE SPILLOVER STRUCTURAL TRANSFORMATION TRADABLE SECTORS TRADE LIBERALIZATION UNEQUAL DISTRIBUTION URBAN AREAS URBAN DWELLERS URBAN GROWTH URBAN MIGRATION URBAN POOR URBAN POPULATION URBAN POPULATION DISTRIBUTION URBAN POPULATION GROWTH URBAN POPULATIONS URBAN POVERTY URBAN WORKERS URBANIZATION WATER SOURCES WELFARE IMPACT WORKFORCE WORKING POPULATION WORLD POPULATION YOUNG ADULT YOUNG ADULTS 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. 2013-01-25T22:31:42Z 2013-01-25T22:31:42Z 2013-01 http://documents.worldbank.org/curated/en/2013/01/17197617/urbanization-affect-rural-poverty-evidence-indian-districts http://hdl.handle.net/10986/12162 English en_US Policy Research Working Paper; No. 6338 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India