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

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Author Info
Fan, Shenggen
Chan-Kang, Connie
Mukherjee, Anit

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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

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 196.

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Date of creation: 2005
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Handle: RePEc:fpr:fcnddp:196

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Keywords: Rural-urban linkages ; Poverty ;

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This paper has been announced in the following NEP Reports: 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.:
  1. Rangarajan, C., 1982. "Agricultural growth and industrial performance in India:," Research reports 33, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. Taylor, J Edward & Rozelle, Scott & de Brauw, Alan, 2003. "Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 75-101, October.
  4. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of poverty in Egypt, 1997," FCND discussion papers 75, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2004. "Reforms, Investment, and Poverty in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 395-421, January.
  6. Fan, Shenggen & Fang, Cheng & Zhang, Xiaobo, 2003. "Agricultural Research and Urban Poverty: The Case of China," World Development, Elsevier, vol. 31(4), pages 733-741, April. [Downloadable!] (restricted)
  7. Yang, Dennis T. & Hao Zhou, 1997. "Rural-Urban Disparity and Sectoral Labor Allocation in China," Working Papers 97-02, Duke University, Department of Economics.
  8. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August. [Downloadable!] (restricted)
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  9. Fan, Shenggen & Chan-Kang, Connie, 2005. "Road development, economic growth, and poverty reduction in China:," Research reports 138, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  10. Hazell, Peter B. & Haggblade, Steven, 1990. "Rural - urban growth linkages in India," Policy Research Working Paper Series 430, The World Bank. [Downloadable!]
  11. Zhang, Xiaobo & Fan, Shenggen, 2004. "Public investment and regional inequality in rural China," Agricultural Economics, Blackwell, vol. 30(2), pages 89-100, March. [Downloadable!] (restricted)
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  12. Jensen, Henning Tarp & Robinson, Sherman & Tarp, Finn, 2002. "General equilibrium measures of agricultural policy bias in fifteen developing countries," TMD discussion papers 105, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  13. Ravallion, Martin & Shaohua Chen, 2004. "China's (uneven) progress against poverty," Policy Research Working Paper Series 3408, The World Bank. [Downloadable!]
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  14. N.R. Bhanumurthy & Arup Mitra, 2003. "Declining poverty in India: A Decomposition analysis," Institute of Economic Growth, Delhi Discussion Papers 70, Institute of Economic Growth, Delhi, India. [Downloadable!]
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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.)

  1. 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. [Downloadable!]
  2. 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). [Downloadable!]
  3. Nin-Pratt, Alejandro & Johnson, Michael & Magalhaes, Eduardo & Diao, Xinshen & You, Liang & Chamberlin, Jordan, 2009. "Priorities for realizing the potential to increase agricultural productivity and growth in Western and Central Africa:," IFPRI discussion papers 876, International Food Policy Research Institute (IFPRI). [Downloadable!]
  4. Headey, Derek & Bezemer, Dirk & Hazell, Peter B., 2008. "Agricultural exit problems: Causes and consequences," IFPRI discussion papers 802, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. 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). [Downloadable!]
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  6. You, Liangzhi & Diao, Xinshen, 2006. "Assessing potential impact of avian influenza on poultry in West Africa: a spatial equilibrium model analysis," DSGD discussion papers 40, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. 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. [Downloadable!]
  8. 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. [Downloadable!]
  9. Badiane, Ousmane, 2006. "Agricultural trade liberalization under Doha: the risks facing African countries," DSGD discussion papers 39, International Food Policy Research Institute (IFPRI). [Downloadable!]
  10. Bezemer, Dirk & Headey, Derek, 2007. "Agriculture, Development and Urban Bias," MPRA Paper 7026, University Library of Munich, Germany. [Downloadable!]
    Other versions:
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