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 the 1983–1999 period, we find that urbanization ha...

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Main Authors:	Cali, Massimiliano, Menon, Carlo
Format:	Journal Article
Language:	en_US
Published:	Oxford University Press on behalf of the World Bank 2014
Subjects:	agricultural products chronic poverty economic growth global poverty incidence of poverty income land prices poverty levels poverty line poverty rates poverty reduction rural rural areas rural economy rural households rural linkages rural poor rural population rural poverty
Online Access:	http://hdl.handle.net/10986/21003

id	okr-10986-21003
recordtype	oai_dc
spelling	okr-10986-210032021-04-23T14:04:01Z Does Urbanization Affect Rural Poverty? Evidence from Indian Districts Cali, Massimiliano Menon, Carlo agricultural products chronic poverty economic growth global poverty incidence of poverty income land prices poverty levels poverty line poverty rates poverty reduction rural rural areas rural economy rural households rural linkages rural poor rural population rural poverty 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, we 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. 2014-12-30T17:11:05Z 2014-12-30T17:11:05Z 2013-06 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/21003 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	agricultural products chronic poverty economic growth global poverty incidence of poverty income land prices poverty levels poverty line poverty rates poverty reduction rural rural areas rural economy rural households rural linkages rural poor rural population rural poverty
spellingShingle	agricultural products chronic poverty economic growth global poverty incidence of poverty income land prices poverty levels poverty line poverty rates poverty reduction rural rural areas rural economy rural households rural linkages rural poor rural population rural poverty Cali, Massimiliano Menon, Carlo Does Urbanization Affect Rural Poverty? Evidence from Indian Districts
geographic_facet	South Asia India
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, we 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	Journal Article
author	Cali, Massimiliano Menon, Carlo
author_facet	Cali, Massimiliano Menon, Carlo
author_sort	Cali, 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	Oxford University Press on behalf of the World Bank
publishDate	2014
url	http://hdl.handle.net/10986/21003
_version_	1764447703309221888

Does Urbanization Affect Rural Poverty? Evidence from Indian Districts

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