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Do infrastructure development and urbanisation lead to rural-urban income inequality? Evidence from some Asian countries

Author

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  • Amritkant Mishra
  • Amba Agarwal

Abstract

This empirical analysis aspires to unearth the nexus between infrastructure development, urbanisation, and rural-urban income inequality in Asian perspective by reasonably using panel data of nine Asian countries for the specific period of 1991 to 2016. The precise result of panel dynamic ordinary least squares (OLS) proffers that some proxies of infrastructure development like electric power, transport as well as telecommunication lead to a potential reduction in rural-urban income disparity while on the other hand, the water and sanitation access escalate the same. The key variables such as urbanisation and inflation lead to inequality in these specific countries. The ultimate outcome of causality unearths the evidence of unidirectional causality running from inflation to rural-urban income imparity, and bidirectional from urbanisation to rural-urban income inequality. Additionally, it also reveals that there is no causality running from any of the latent variables of infrastructure development towards the inequality or vice-versa.

Suggested Citation

  • Amritkant Mishra & Amba Agarwal, 2019. "Do infrastructure development and urbanisation lead to rural-urban income inequality? Evidence from some Asian countries," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 11(2), pages 167-183.
    • Handle: RePEc:ids:ijsuse:v:11:y:2019:i:2:p:167-183
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    Citations

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    Cited by:

    1. Lu, Haiyan & Zhao, Pengjun & Hu, Haoyu & Zeng, Liangen & Wu, Kai Sheng & Lv, Di, 2022. "Transport infrastructure and urban-rural income disparity: A municipal-level analysis in China," Journal of Transport Geography, Elsevier, vol. 99(C).
    2. Vahid Javidroozi & Claudia Carter & Michael Grace & Hanifa Shah, 2023. "Smart, Sustainable, Green Cities: A State-of-the-Art Review," Sustainability, MDPI, vol. 15(6), pages 1-28, March.
    3. Meseret Chanieabate & Hai He & Chuyue Guo & Betelhem Abrahamgeremew & Yuanji Huang, 2023. "Examining the Relationship between Transportation Infrastructure, Urbanization Level and Rural-Urban Income Gap in China," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    4. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2023. "The Influence of Investment, Energy Infrastructure, and Human Capital Towards Convergence of Regional Disparities in Sumatra Island, Indonesia; Using Oil and Gas Data and Without Oil and Gas," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 139-149, July.
    5. Shah, Syed Ale Raza & Naqvi, Syed Asif Ali & Riaz, Sabahat & Anwar, Sofia & Abbas, Nasir, 2020. "Nexus of biomass energy, key determinants of economic development and environment: A fresh evidence from Asia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).

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