Does Urbanization Affect Rural Poverty? Evidence from Indian Districts | Land Portal

Informations sur la ressource

Date of publication: 
juin 2013
Resource Language: 
ISBN / Resource ID: 
handle:10986/21003
Copyright details: 
World Bank

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.

Auteurs et éditeurs

Author(s), editor(s), contributor(s): 

Cali, Massimiliano
Menon, Carlo

Publisher(s): 

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.

Fournisseur de données

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.

Concentration géographique

Catégories apparentées

Partagez cette page