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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.

Suggested Citation

  • Majumder, Rajarshi, 2012. "Removing poverty and inequality in India: the role of infrastructure," MPRA Paper 40941, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:40941
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    File URL: https://mpra.ub.uni-muenchen.de/40941/1/MPRA_paper_40941.pdf
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    References listed on IDEAS

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    1. 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.
    2. Binswanger, Hans P. & Khandker, Shahidur R. & Rosenzweig, Mark R., 1993. "How infrastructure and financial institutions affect agricultural output and investment in India," Journal of Development Economics, Elsevier, vol. 41(2), pages 337-366, August.
    3. Fan, Shenggen & Zhang, Xiaobo, 2004. "Infrastructure and regional economic development in rural China," China Economic Review, Elsevier, vol. 15(2), pages 203-214.
    4. 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).
    5. Van de Walle, D., 1996. "Infrastructure and Poverty in Vietnam," Papers 121, World Bank - Living Standards Measurement.
    6. 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.
    7. Sawada Yasuyuki & Sugawara Shinya & Shoji Masahiro & Shinkai Naoko, 2014. "The Role of Infrastructure in Mitigating Poverty Dynamics: The Case of an Irrigation Project in Sri Lanka," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 1-28, July.
    8. 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.
    9. 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.
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    Citations

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    Cited by:

    1. Calderon, Cesar & Serven, Luis, 2014. "Infrastructure, growth, and inequality : an overview," Policy Research Working Paper Series 7034, The World Bank.
    2. Roy Bahl & Richard M. Bird, 2014. "Decentralization and Infrastructure: Principles and Practice," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1408, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Bajar, Sumedha & Rajeev, Meenakshi, 2015. "Impact of infrastructure provisioning on inequality: Evidence from India," Working Papers 337, Institute for Social and Economic Change, Bangalore.

    More about this item

    Keywords

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

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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