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Removing poverty and inequality in India: the role of infrastructure

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  • Majumder, Rajarshi

Abstract

Developing countries attach enormous importance to physical infrastructure for poverty reduction. We contend that this association is different across types of infrastructure and regions. The present paper explores the multidimensional association between infrastructure and poverty in India in a regional framework. Infrastructural availability improves average living standards and lowers the incidence of poverty but the relation between infrastructural situation and inequality indicates higher inequality in regions with better infrastructure, especially for rural areas. Various sub-components of infrastructure have different impacts on poverty reduction and policy formulations should focus on such differentiated roles while drawing up programmes.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40941.

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Date of creation: Apr 2012
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Handle: RePEc:pra:mprapa:40941

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Keywords: Poverty; Infrastructure; Inequality; India; Regional Study; Asia;

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  1. Sawada, Yasuyuki & Shoji, Masahiro & Sugawara, Shinya & Shinkai, Naoko, 2010. "The Role of Infrastructure in Mitigating Poverty Dynamics:The Case of an Irrigation Project in Sri Lanka," Working Papers 4, JICA Research Institute.
  2. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
  3. Binswanger, Hans P. & Khandker, Shahidur R & Rosenzweig, Mark R., 1989. "How infrastructure and financial institutions affect agricultural output and investment in India," Policy Research Working Paper Series 163, The World Bank.
  4. Fan, Shenggen & Zhang, Xiaobo, 2004. "Infrastructure and regional economic development in rural China," China Economic Review, Elsevier, vol. 15(2), pages 203-214.
  5. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
  6. Van de Walle, D., 1996. "Infrastructure and Poverty in Vietnam," Papers 121, World Bank - Living Standards Measurement.
  7. Xiaobo Zhang & Shenggen Fan, 2004. "How Productive Is Infrastructure? A New Approach and Evidence from Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 492-501.
  8. Michael Lokshin & Ruslan Yemtsov, 2005. "Has Rural Infrastructure Rehabilitation in Georgia Helped the Poor?," World Bank Economic Review, World Bank Group, vol. 19(2), pages 311-333.
  9. Michael Lokshin & Ruslan Yemtsov, 2004. "Combining Longitudinal Household and Community Surveys for Evaluation of Social Transfers: infrastructure rehabilitation projects in rural Georgia," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 5(2), pages 265-277.
  10. Arsenio Balisacan & Ernesto Pernia & Abuzar Asra, 2003. "Revisiting growth and poverty reduction in Indonesia: what do subnational data show?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 329-351.
  11. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
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