Spatial poverty traps?
AbstractCan place of residence make the difference between growth and contraction in living standards for otherwise identical households? The authors test for the existence of spatial poverty traps, using a micro model of consumption growth incorporating geographic externalities, whereby neighborhood endowments of physical and human capital influence the productivity of a household's own capital. By allowing for nonstationary but unobserved individual effects on growth rates, they are able to deal with latent heterogeneity (whereby hidden factors entail that seemingly identical households see different consumption gains over time), yet identify the effects of stationary geographic variables. They estimate the model using farm-household panel data from post-reform rural China. They find strong evidence of spatial poverty traps. Their results strengthen the case -- both for efficiency and equity -- for investing in the geographic capital of poor people.
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 The World Bank in its series Policy Research Working Paper Series with number 1862.
Date of creation: 31 Dec 1997
Date of revision:
Environmental Economics&Policies; Economic Theory&Research; Public Health Promotion; Health Monitoring&Evaluation; Economic Conditions and Volatility; Achieving Shared Growth; Economic Theory&Research; Environmental Economics&Policies; Inequality; Health Monitoring&Evaluation;
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.:
- George J. Borjas, 1994.
"Ethnicity, Neighborhoods, and Human Capital Externalities,"
NBER Working Papers
4912, National Bureau of Economic Research, Inc.
- Borjas, George J, 1995. "Ethnicity, Neighborhoods, and Human-Capital Externalities," American Economic Review, American Economic Association, vol. 85(3), pages 365-90, June.
- Costas Azariadis, 1996.
"The Economics of Poverty Traps Part One: Complete Markets,"
9606, Centro de Investigacion Economica, ITAM.
- Azariadis, Costas, 1996. " The Economics of Poverty Traps: Part One: Complete Markets," Journal of Economic Growth, Springer, vol. 1(4), pages 449-96, December.
- 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.
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Ravallion, Martin & Jalan, Jyotsna, 1996. "Growth divergence due to spatial externalities," Economics Letters, Elsevier, vol. 53(2), pages 227-232, November.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Hall, Alastair R., 2004. "Generalized Method of Moments," OUP Catalogue, Oxford University Press, number 9780198775201, September.
- 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.
- Baliamoune-Lutz, Mina & Lutz, Stefan H., 2004. "Rural-urban inequality in Africa: A panel study of the effects of trade liberalization and financial deepening," ZEI Working Papers B 06-2004, ZEI - Center for European Integration Studies, University of Bonn.
- Carvalho, Alexandre & Lall, Somik V. & Timmins, Christopher, 2006. "Regional subsidies and industrial prospects of lagging regions," Policy Research Working Paper Series 3843, The World Bank.
- Siegel, Paul B., 2005. "Using an asset-based approach to identify drivers of sustainable rural growth and poverty reduction in Central America : a conceptual framework," Policy Research Working Paper Series 3475, The World Bank.
- Stefan Dercon, 2003.
"Growth and Shocks: evidence from rural Ethiopia,"
CSAE Working Paper Series
2003-12, Centre for the Study of African Economies, University of Oxford.
- Michael Epprecht & Daniel Müller & Nicholas Minot, 2011. "How remote are Vietnam’s ethnic minorities? An analysis of spatial patterns of poverty and inequality," The Annals of Regional Science, Springer, vol. 46(2), pages 349-368, April.
- Deichmann, Uwe & Fay, Marianne & Jun Koo & Lall, Somik V., 2002.
"Economic structure, productivity, and infrastructure quality in southern Mexico,"
Policy Research Working Paper Series
2900, The World Bank.
- Uwe Deichmann & Marianne Fay & Jun Koo & Somik V. Lall, 2004. "Economic structure, productivity, and infrastructure quality in Southern Mexico," The Annals of Regional Science, Springer, vol. 38(3), pages 361-385, 09.
- Van de Walle, Dominique, 1998. "Protecting the poor in Vietnam's emerging market economy," Policy Research Working Paper Series 1969, The World Bank.
- McCulloch, Neil & Calandrino, Michele, 2003. "Vulnerability and Chronic Poverty in Rural Sichuan," World Development, Elsevier, vol. 31(3), pages 611-628, March.
- Burke, William J. & Jayne, Thomas S., 2008. "Spatial Disadvantages or Spatial Poverty Traps: Household Evidence from Rural Kenya," Food Security International Development Working Papers 54560, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Ravallion, Martin & Shaohua Chen, 1998. "When economic reform is faster than statistical reform - measuring and explaining inequality in rural China," Policy Research Working Paper Series 1902, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.