IDEAS home Printed from https://ideas.repec.org/p/ags/aaae13/161446.html
   My bibliography  Save this paper

Urbanization and Poverty Reduction – The Role of Rural Diversification and Secondary Towns

Author

Listed:
  • Christiaensen, Luc
  • De Weerdt, Joachim
  • Todo, Yasuyuki

Abstract

A rather unique panel tracking more than 3300 individuals from households in rural Kagera, Tanzania during 1991/4-2010 shows that about 1 out of 2 individuals/households who exited poverty did so by transitioning out of agriculture into the rural nonfarm economy or secondary towns. Only 1 out of 7 exited poverty by migrating to the big cities, even though those moving to the city experienced on average faster consumption growth. Further analysis of a much larger cross-country panel of 51 developing countries cannot reject that rural diversification and secondary town development lead to more inclusive growth patterns than metropolitization. Indications are that this follows because more of the poor find their way to the rural nonfarm economy and secondary towns, than to distant cities. The development discourse would benefit from shifting beyond the rural-urban dichotomy and focusing more instead on how best to urbanize and develop its rural nonfarm economy and secondary towns.

Suggested Citation

  • Christiaensen, Luc & De Weerdt, Joachim & Todo, Yasuyuki, 2013. "Urbanization and Poverty Reduction – The Role of Rural Diversification and Secondary Towns," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161446, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae13:161446
    DOI: 10.22004/ag.econ.161446
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/161446/files/Urbanization%20and%20Poverty%20Reduction.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.161446?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Henderson, J Vernon & Kuncoro, Ari, 1996. "Industrial Centralization in Indonesia," The World Bank Economic Review, World Bank, vol. 10(3), pages 513-540, September.
    2. Joachim De Weerdt, 2010. "Moving out of Poverty in Tanzania: Evidence from Kagera," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 331-349.
    3. Ravallion, Martin, 2002. "On the urbanization of poverty," Journal of Development Economics, Elsevier, vol. 68(2), pages 435-442, August.
    4. Massimiliano Calì & Carlo Menon, 2013. "Does Urbanization Affect Rural Poverty? Evidence from Indian Districts," The World Bank Economic Review, World Bank, vol. 27(2), pages 171-201.
    5. Kristian Behrens & Alain Pholo Bala, 2013. "Do rent-seeking and interregional transfers contribute to urban primacy in Sub-Saharan Africa?," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 163-195, March.
    6. Harold Alderman & Jere Behrman & Hans-Peter Kohler & John A. Maluccio & Susan Watkins, 2001. "Attrition in Longitudinal Household Survey Data," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 5(4), pages 79-124.
    7. Baez, Javier E., 2011. "Civil wars beyond their borders: The human capital and health consequences of hosting refugees," Journal of Development Economics, Elsevier, vol. 96(2), pages 391-408, November.
    8. Suryahadi, Asep & Suryadarma, Daniel & Sumarto, Sudarno, 2009. "The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 89(1), pages 109-117, May.
    9. Joachim De Weerdt & Kalle Hirvonen, 2016. "Risk Sharing and Internal Migration," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 63-86.
    10. Martin Ravallion & Shaohua Chen & Prem Sangraula, 2007. "New Evidence on the Urbanization of Global Poverty," Population and Development Review, The Population Council, Inc., vol. 33(4), pages 667-701, December.
    11. Loayza, Norman V. & Raddatz, Claudio, 2010. "The composition of growth matters for poverty alleviation," Journal of Development Economics, Elsevier, vol. 93(1), pages 137-151, September.
    12. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    13. Poncet, Sandra, 2006. "Provincial migration dynamics in China: Borders, costs and economic motivations," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 385-398, May.
    14. Neil McCulloch & Julian Weisbrod & C. Peter Timmer, 2007. "Pathways out of poverty during an economic crisis: An empirical assessment of rural Indonesia," Departmental Discussion Papers 131, University of Goettingen, Department of Economics.
    15. Dorosh, Paul & Thurlow, James, 2014. "Can Cities or Towns Drive African Development? Economywide Analysis for Ethiopia and Uganda," World Development, Elsevier, vol. 63(C), pages 113-123.
    16. Anand, Sudhir & Kanbur, S M R, 1985. "Poverty under the Kuznets Process," Economic Journal, Royal Economic Society, vol. 95(380a), pages 42-50, Supplemen.
    17. Kathleen Beegle & Joachim De Weerdt & Stefan Dercon, 2011. "Migration and Economic Mobility in Tanzania: Evidence from a Tracking Survey," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 1010-1033, August.
    18. Gabriel Demombynes & Johannes G. Hoogeveen, 2007. "Growth, Inequality and Simulated Poverty Paths for Tanzania, 1992--2002," Journal of African Economies, Centre for the Study of African Economies, vol. 16(4), pages 596-628, August.
    19. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
    20. Fields, Gary S., 2005. "A welfare economic analysis of labor market policies in the Harris-Todaro model," Journal of Development Economics, Elsevier, vol. 76(1), pages 127-146, February.
    21. Christiaensen, Luc & Todo, Yasuyuki, 2014. "Poverty Reduction During the Rural–Urban Transformation – The Role of the Missing Middle," World Development, Elsevier, vol. 63(C), pages 43-58.
    22. Zhang, Junfu & Zhao, Zhong, 2013. "Measuring the Income-Distance Tradeoff for Rural-Urban Migrants in China," IZA Discussion Papers 7160, Institute of Labor Economics (IZA).
    23. Montalvo, Jose G. & Ravallion, Martin, 2010. "The pattern of growth and poverty reduction in China," Journal of Comparative Economics, Elsevier, vol. 38(1), pages 2-16, March.
    24. J. Vernon Henderson, 2010. "Cities And Development," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 515-540, February.
    25. Martin Ravallion, 2012. "Why Don't We See Poverty Convergence?," American Economic Review, American Economic Association, vol. 102(1), pages 504-523, February.
    26. Haggblade, Steven & Hazell, Peter B. R. & Reardon, Thomas Anthony (ed.), 2007. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-8018-8664-5.
    27. Céline Ferré & Francisco H.G. Ferreira & Peter Lanjouw, 2012. "Is There a Metropolitan Bias? The relationship between poverty and city size in a selection of developing countries," The World Bank Economic Review, World Bank, vol. 26(3), pages 351-382.
    28. Henderson, Vernon, 2003. "The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
    29. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    30. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1577-1625.
    31. Ferreira, Francisco H.G. & Leite, Phillippe G. & Ravallion, Martin, 2010. "Poverty reduction without economic growth?: Explaining Brazil's poverty dynamics, 1985-2004," Journal of Development Economics, Elsevier, vol. 93(1), pages 20-36, September.
    32. Dorosh, Paul & Thurlow, James, 2014. "Can Cities or Towns Drive African Development? Economywide Analysis for Ethiopia and Uganda," World Development, Elsevier, vol. 63(C), pages 113-123.
    33. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
    34. repec:unu:wpaper:wp2012-50 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christiaensen, Luc & Todo, Yasuyuki, 2014. "Poverty Reduction During the Rural–Urban Transformation – The Role of the Missing Middle," World Development, Elsevier, vol. 63(C), pages 43-58.
    2. De Weerdt,Joachim & Christiaensen,Luc & Kanbur,Ravi, 2021. "When Distance Drives Destination, Towns Can Stimulate Development," Policy Research Working Paper Series 9622, The World Bank.
    3. repec:lic:licosd:42321 is not listed on IDEAS
    4. Christiaensen, Luc & De Weerdt, Joachim & Kanbur, Ravi, 2016. "Urbanization and poverty reduction: the role of secondary towns in Tanzania," IOB Analyses & Policy Briefs 18, Universiteit Antwerpen, Institute of Development Policy (IOB).
    5. Mahé, Clothilde & Naudé, Wim, 2016. "Migration, occupation and education: Evidence from Ghana," MERIT Working Papers 2016-018, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Joachim Vandercasteelen & Seneshaw Tamru Beyene & Bart Minten & Jo Swinnen, 2017. "Secondary towns, agricultural prices, and intensification: evidence from Ethiopia," Working Papers of LICOS - Centre for Institutions and Economic Performance 579601, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    7. repec:lic:licosd:39317 is not listed on IDEAS
    8. Vandercasteelen, Joachim & Beyene, Seneshaw Tambru & Minten, Bart & Swinnen, Johan, 2018. "Big cities, small towns, and poor farmers: Evidence from Ethiopia," World Development, Elsevier, vol. 106(C), pages 393-406.
    9. Rui Benfica & Heath Henderson, 2021. "The Effect of the Sectoral Composition of Economic Growth on Rural and Urban Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 248-284, March.
    10. Ravi Kanbur & Luc Christiaensen & Joachim De Weerdt, 2019. "Where to create jobs to reduce poverty: cities or towns?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(4), pages 543-564, December.
    11. Ingelaere, Bert & Christiaensen, Luc & De Weerdt, Joachim & Kanbur, Ravi, 2018. "Why secondary towns can be important for poverty reduction – A migrant perspective," World Development, Elsevier, vol. 105(C), pages 273-282.
    12. Luc Christiaensen & Ravi Kanbur, 2017. "Secondary Towns and Poverty Reduction: Refocusing the Urbanization Agenda," Annual Review of Resource Economics, Annual Reviews, vol. 9(1), pages 405-419, October.
    13. Wineman, Ayala & Jayne, Thomas S., 2016. "Intra-Rural Migration in Tanzania and Pathways of Welfare Change," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235957, Agricultural and Applied Economics Association.
    14. Erumban, Abdul A. & de Vries, Gaaitzen J., 2024. "Structural change and poverty reduction in developing economies," World Development, Elsevier, vol. 181(C).
    15. Bhattacharyya, Sambit & Resosudarmo, Budy P., 2015. "Growth, Growth Accelerations, and the Poor: Lessons from Indonesia," World Development, Elsevier, vol. 66(C), pages 154-165.
    16. Wineman, Ayala & Jayne, Thomas S., 2017. "Intra-Rural Migration And Pathways To Greater Well-Being: Evidence From Tanzania," Feed the Future Innovation Lab for Food Security Policy Research Papers 261669, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    17. Katsushi S. Imai & Gordon Abekah-Nkrumah & Purnima Purohit, 2014. "Is Rural Contribution to Aggregate Poverty Reduction Substantial? New Evidence," Global Development Institute Working Paper Series 20814, GDI, The University of Manchester.
    18. Kanbur, Ravi & Christiaensen, Luc & Ingelaere, Bert & De Weerdt, Joachim, 2017. "Why Secondary Towns Can Be Important for Poverty Reduction – A Migrant’s Perspective," CEPR Discussion Papers 12193, C.E.P.R. Discussion Papers.
    19. Cazzuffi, Chiara & Pereira-López, Mariana & Soloaga, Isidro, 2017. "Local poverty reduction in Chile and Mexico: The role of food manufacturing growth," Food Policy, Elsevier, vol. 68(C), pages 160-185.
    20. Nobuhiko Fuwa & Arsenio M. Balisacan & Fabrizio Bresciani, 2015. "In Search of a Strategy for Making Growth More Pro-Poor in the Philippines," Asian Economic Papers, MIT Press, vol. 14(1), pages 202-226, Winter/Sp.
    21. Nobuhiko Fuwa, 2010. "Should We Track Migrant Households When Collecting Household Panel Data? Household Relocation, Economic Mobility, and Attrition Biases in the Rural Philippines," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 56-82.
    22. Vandercasteelen, Joachim & Beyene, Seneshaw Tamru & Minten, Bart & Swinnen, Johan, 2018. "Cities and agricultural transformation in Africa: Evidence from Ethiopia," World Development, Elsevier, vol. 105(C), pages 383-399.

    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:ags:aaae13:161446. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.