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

Author

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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

Suggested Citation

  • Fan, Shenggen & Chan-Kang, Connie & Mukherjee, Anit, 2005. "Rural and urban dynamics and poverty: Evidence from China and India," FCND discussion papers 196, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:196
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    References listed on IDEAS

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    Cited by:

    1. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
    2. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
    3. I. Omosebi Ayeomoni & Saheed A. Aladejana, 2016. "Agricultural Credit and Economic Growth Nexus. Evidence from Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 146-158, April.
    4. 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.
    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. Deshingkar, Priya & Akter, Shaheen, 2009. "Migration and Human Development in India," MPRA Paper 19193, University Library of Munich, Germany.
    7. 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).
    8. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    9. Oh, Saera & Lee, Sang Hyeon, 2017. "Does trade contribute to poverty reduction? If it does, where the benefit goes to?," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252849, Southern Agricultural Economics Association.
    10. 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.
    11. Abdul Saboor & Maria Manzoor & Atta Khan, 2016. "Time use poverty and gender inequality: empirical evidences from Punjab," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 421-438, January.
    12. Grabowski, Richard, 2009. "An alternative Indian model?," Journal of Asian Economics, Elsevier, vol. 20(1), pages 50-61, January.
    13. Atta Ullah Khan & Abdul Saboor & Ikram Ali & Wasim Shahid Malik & Khalid Mahmood, 2016. "Urbanization of multidimensional poverty: empirical evidences from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 439-469, January.
    14. Ozgur Kaya & Ilker Kaya & Lewell Gunter, 2013. "Foreign Aid and the Quest for Poverty Reduction: Is Aid to Agriculture Effective?," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 583-596, September.
    15. 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.
    16. Ligon, Ethan & Sadoulet, Elisabeth, 2017. "Estimating the Relative Benefits of Agricultural Growth on the Distribution of Expenditures," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt3zh92962, Department of Agricultural & Resource Economics, UC Berkeley.
    17. 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.
    18. 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).
    19. Abdul Saboor & Maria Manzoor & Atta Ullah Khan, 2016. "Time use poverty and gender inequality: empirical evidences from Punjab," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 421-438, January.
    20. Escobal, Javier & Favareto, Arilson & Aguirre, Francisco & Ponce, Carmen, 2015. "Linkage to Dynamic Markets and Rural Territorial Development in Latin America," World Development, Elsevier, vol. 73(C), pages 44-55.
    21. 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.
    22. 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).
    23. 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.
    24. 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).

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    Keywords

    Rural-urban linkages ; Poverty ;

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