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Rural and urban dynamics and poverty: Evidence from China and India

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  • Fan, Shenggen
  • Chan-Kang, Connie
  • Mukherjee, Anit

Abstract

"Like many developing countries, China and India followed development strategies biased in favor of the urban sector over the last several decades. These development schemes have led to overall efficiency losses due to misallocation of resources among rural and urban sectors. It also led to large income gaps between rural and urban areas. The urban bias was greater in China than in India. Indeed, official data show that both the income gap and the difference in poverty rates between rural and urban areas are much larger in China than in India. Both countries have corrected the rural-urban divide to some extent as part of reform processes. But the bias still exists. Other studies also support the idea presented here that correcting this imbalance will not only contribute to higher rural growth, but also secure future urban growth (Fan and Chan-Kang 2005). More important, correcting the urban bias will lead to larger reductions in poverty as well as more balanced growth across sectors and regions. Correcting a government's bias towards investment in urban areas is one of the most important policies to pursue." from Authors' Abstract

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 196.

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Date of creation: 2005
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Handle: RePEc:fpr:fcnddp:196

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Keywords: Rural-urban linkages ; Poverty ;

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References

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Citations

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Cited by:
  1. Priya Deshingkar & Shaheen Akter, 2009. "Migration and Human Development in India," Human Development Research Papers (2009 to present) HDRP-2009-13, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
  2. Kaya, Oz & Kaya, Ilker & Gunter, Lewell, 2013. "Foreign aid and the quest for poverty reduction: Is aid to agriculture effective?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150720, Agricultural and Applied Economics Association.
  3. Diao, Xinshen & Hazell, P.B.R. & Resnick, Danielle & Thurlow, James, 2007. "The role of agriculture in development: Implications for Sub-Saharan Africa," Research reports 153, International Food Policy Research Institute (IFPRI).
  4. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
  5. Gustavo Anríquez & Kostas Stamoulis, 2007. "Rural Development and Poverty Reduction; Is Agriculture Still the Key?," Working Papers 07-02, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  6. Grabowski, Richard, 2009. "An alternative Indian model?," Journal of Asian Economics, Elsevier, vol. 20(1), pages 50-61, January.
  7. Kleinwechter, Ulrich & Grethe, Harald, 2012. "Policy impacts under alternative land market regimes in rural China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125860, International Association of Agricultural Economists.
  8. Gustavo Anríquez & Kostas Stamoulis, 2007. "Rural development and poverty reduction: is agriculture still the key?," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 5-46.
  9. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
  10. Nandita Saikia & Abhishek Singh & Domantas Jasilionis & Faujdar Ram, 2013. "Explaining the rural-urban gap in infant mortality in India," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(18), pages 473-506, September.
  11. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2006. "The role of agriculture in poverty reduction an empirical perspective," Policy Research Working Paper Series 4013, The World Bank.
  12. Anriquez, Gustavo & Stamoulis, Kostas G., 2007. "Rural Development and Poverty Reduction: Is Agriculture Still Key?," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 4(1).
  13. Kleinwechter, Ulrich & Grethe, Harald, 2012. "Trade policy impacts under alternative land market regimes in rural China," China Economic Review, Elsevier, vol. 23(4), pages 1071-1089.
  14. Gustavo Anríquez, 2007. "Governance and Rural Public Expenditures in Latin America. The Impact on Rural Development," Working Papers 07-01, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  15. John W. Mellor & Chandrashekhar Ranade, 2006. "Why Does Agricultural Growth Dominate Poverty Reduction in Low- and Middle-income Countries?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(2), pages 221-240.
  16. Diao, Xinshen & Nwafor, Manson & Alpuerto, Vida, 2009. "Options for agricultural growth for poverty reduction in Nigeria:," NSSP working papers 2, International Food Policy Research Institute (IFPRI).
  17. Renkow, Mitch, 2010. "Impacts of IFPRI's "priorities for pro-poor public investment" global research program:," Impact assessments 31, International Food Policy Research Institute (IFPRI).

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