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Externalities in rural development - evidence for China Author info | Abstract | Publisher info | Download info | Related research | Statistics Ravallion, Martin
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The 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.
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number
2879.
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Date of creation: 31 Aug 2002Date of revision:
Handle: RePEc:wbk:wbrwps:2879Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433 Email: Web page: http://www.worldbank.org/ More information through EDIRC
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Keywords: Labor Policies ; Economic Theory&Research ; Economic Conditions and Volatility ; Environmental Economics&Policies ; Health Economics&Finance ; Environmental Economics&Policies ; Economic Theory&Research ; Inequality ; Achieving Shared Growth ; Health Economics&Finance ; Other versions of this item:
References listed on IDEAS 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.: 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.
[Downloadable!] (restricted)
Arellano, Manuel & Bond, Stephen, 1991.
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[Downloadable!] (restricted)
Haggblade, Steven & Hazell, Peter & Brown, James, 1989.
"Farm-nonfarm linkages in rural sub-Saharan Africa ,"
World Development ,
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[Downloadable!] (restricted)
Other versions: 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 ,
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[Downloadable!] (restricted)
Other versions: 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).
[Downloadable!]
Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 1999.
"Is knowledge shared within households? ,"
Policy Research Working Paper Series
2261, The World Bank.
[Downloadable!]
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.
[Downloadable!] (restricted)
Jyotsna Jalan & Martin Ravallion, 1998.
"Geographic Poverty Traps? ,"
Boston University - Institute for Economic Development
86, Boston University, Institute for Economic Development.
Martin Ravallion & Jyotsna Jalan, 1999.
"China's Lagging Poor Areas ,"
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American Economic Association, vol. 89(2), pages 301-305, May.
[Downloadable!] (restricted)
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.
[Downloadable!] (restricted)
Other versions: Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988.
"Estimating Vector Autoregressions with Panel Data ,"
Econometrica ,
Econometric Society, vol. 56(6), pages 1371-95, November.
[Downloadable!] (restricted)
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.
[Downloadable!] (restricted)
Other versions: 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.
[Downloadable!] (restricted)
Besley, Timothy, 1995.
"Savings, credit and insurance ,"
Handbook of Development Economics ,
in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 36, pages 2123-2207
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[Downloadable!] (restricted)
Other versions: 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.
Full
references Cited by : (explanations , 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.)
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.
[Downloadable!]
Mariapia MENDOLA, 2005.
"Agricultural technology and poverty reduction: a micro-level analysis of causal effects ,"
Departemental Working Papers
2005-14, Department of Economics University of Milan Italy.
[Downloadable!]
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.
[Downloadable!]
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