IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/332.html
   My bibliography  Save this paper

Increasing political returns and rural-urban migrations

Author

Listed:
  • Gabriel Sánchez

Abstract

This paper analyzes the different equilibria in rural-urban migrations and political redistribution that result from the interaction between increasing political returns, the distribution of land, and credit market imperfections. Governments that put a special weight on the welfare of urban workers when setting agricultural prices generate a political externality in the urban sector, giving peasants an incentive to migrate in anticipation of policy determination. If credit markets are imperfect, land ownership confers higher productivity to peasants, who require large price changes to migrate. In this context, land inequality would lead to large migrations and to large policy change, while an egalitarian land distribution would lead to no migration and to a small policy change. This interaction sheds light on the contrasting experience of Latin America and East Asia at the outset of World War II.

Suggested Citation

  • Gabriel Sánchez, 1998. "Increasing political returns and rural-urban migrations," Economics Working Papers 332, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:332
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/332.pdf
    File Function: Whole Paper
    Download Restriction: no

    File URL: https://econ-papers.upf.edu/papers/332fig.pdf
    File Function: Figures
    Download Restriction: no

    More about this item

    Keywords

    Endogenous trade policies; political externality; multiple equilibria; land distribution; rural-urban migration; East Asia; Latin America;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:332. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.econ.upf.edu/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.