Externalities in Rural Development: Evidence for China
AbstractThe author tests for external effects of local economic activity on consumption and income growth at the farm-household level using panel data from four provinces of post-reform rural China. The tests allow for non-stationary fixed effects in the consumption growth process. Evidence is found of geographic externalities, stemming from spillover effects of the level and composition of local economic activity and private returns to local human and physical infrastructure endowments. The results suggest an explanation for rural underdevelopment arising from under-investment in certain externality-generating activities, of which agricultural development emerges as the most important.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper DP2003/54.
Length: 28 pages
Date of creation: 2003
Date of revision:
consumption growth; income growth; externalities; panel data; rural China;
Other versions of this item:
- Ravallion, Martin, 2002. "Externalities in rural development - evidence for China," Policy Research Working Paper Series 2879, The World Bank.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Foster, Andrew D & Rosenzweig, Mark R, 1995.
"Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture,"
Journal of Political Economy,
University of Chicago Press, vol. 103(6), pages 1176-1209, December.
- Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
- Mark Rosenzweig & Andrew D. Foster, .
"Technical Change and Human Capital Returns and Investments: Evidence from the Green Revolution,"
_065, University of Pennsylvania.
- Foster, Andrew D & Rosenzweig, Mark R, 1996. "Technical Change and Human-Capital Returns and Investments: Evidence from the Green Revolution," American Economic Review, American Economic Association, vol. 86(4), pages 931-53, September.
- Jalan, Jyotsna & Ravallion, Martin, 1998.
"Are there dynamic gains from a poor-area development program?,"
Journal of Public Economics,
Elsevier, vol. 67(1), pages 65-85, January.
- Jalan, Jyotsna & Ravallion, Martin, 1996. "Are there dynamic gains from a poor-area development program?," Policy Research Working Paper Series 1695, The World Bank.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Haggblade, Steven & Hazell, P. B. R. & Reardon, Thomas, 2002. "Strategies for stimulating poverty-alleviating growth in the rural nonfarm economy in developing countries:," EPTD discussion papers 92, International Food Policy Research Institute (IFPRI).
- Chen, Shaohua & Ravallion, Martin, 1996. "Data in transition: Assessing rural living standards in Southern China," China Economic Review, Elsevier, vol. 7(1), pages 23-56.
- Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
- Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988.
"Estimating Vector Autoregressions with Panel Data,"
Econometric Society, vol. 56(6), pages 1371-95, November.
- Tom Doan, . "RATS program to demonstrate IV estimation of VAR in panel data," Statistical Software Components RTZ00185, Boston College Department of Economics.
- Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
- Besley, T., 1993.
"Savings, Credit and Insurance,"
167, Princeton, Woodrow Wilson School - Development Studies.
- Greenwald, Bruce C & Stiglitz, Joseph E, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 229-64, May.
- Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
- Haggblade, Steven & Hazell, Peter B. & Brown, James, 1988.
"Farm-nonfarm linkages in rural sub-Saharan Africa,"
Policy Research Working Paper Series
6, The World Bank.
- Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 1999. "Is knowledge shared within households?," Policy Research Working Paper Series 2261, The World Bank.
- Jyotsna Jalan & Martin Ravallion, 1999. "China's Lagging Poor Areas," American Economic Review, American Economic Association, vol. 89(2), pages 301-305, May.
- Jyotsna Jalan & Martin Ravallion, 1998. "Geographic Poverty Traps?," Boston University - Institute for Economic Development 86, Boston University, Institute for Economic Development.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Holtz-Eakin, Douglas, 1988. "Testing for individual effects in autoregressive models," Journal of Econometrics, Elsevier, vol. 39(3), pages 297-307, November.
- Chan Ahn, S. & Lee, Y.H., 1994. "GMM Estimation of a Panel Data Regression Model with Time-Varying Individual Effects," Papers 9401, Michigan State - Econometrics and Economic Theory.
- Farrow, Andrew & Opondo, Chris & Rao, KPC & Tenywa, Moses & Njeru, Rose & Kashaija, Imelda & Kamugisha, Rick & Ramazani, Michel & Nkonya, Ephraim & Kayiranga, Didace & Lubanga, Lunze & Nabahungu, Leon, 2013. "Selecting sites to prove the concept of IAR4D in the Lake Kivu Pilot Learning Site," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(3), September.
- Zhu, Nong & Luo, Xubei, 2006. "Nonfarm activity and rural income inequality : a case study of two provinces in China," Policy Research Working Paper Series 3811, The World Bank.
- Escobal, Javier, 2005. "The Role of Public Infraestructure in Market Development in Rural Peru," MPRA Paper 727, University Library of Munich, Germany.
- Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
- Zhu, Nong & Luo, Xubei, 2008. "The impact of remittances on rural poverty and inequality in China," Policy Research Working Paper Series 4637, The World Bank.
- Valdés, Alberto & Foster, William, 2010. "Reflections on the Role of Agriculture in Pro-Poor Growth," World Development, Elsevier, vol. 38(10), pages 1362-1374, October.
- Kuyvenhoven, Arie, 2004. "Creating an enabling environment: policy conditions for less-favored areas," Food Policy, Elsevier, vol. 29(4), pages 407-429, August.
- Mariapia Mendola, 2003.
"Agricultural Technology and Povertry Reduction: A Micro-Level Analysis of Causal Effects,"
Development Working Papers
179, Centro Studi Luca d\'Agliano, University of Milano.
- Mariapia MENDOLA, 2005. "Agricultural technology and poverty reduction: a micro-level analysis of causal effects," Departmental Working Papers 2005-14, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.