Poverty Reduction During the Rural-Urban Transformation: Rural Development is Still More Important than Urbanisation?

38 Pages Posted: 20 Jun 2014

See all articles by Katsushi S. Imai

Katsushi S. Imai

University of Manchester - School of Social Sciences

Raghav Gaiha

University of Delhi - Department of Economics; Australian National University (ANU)

Alessandra Garbero

International Fund for Agricultural Development (IFAD)

Multiple version iconThere are 2 versions of this paper

Date Written: May 30, 2014

Abstract

Based on cross-country datasets, we find that (i) development of the rural agricultural sector is the most poverty reducing; (ii) rural non-agricultural sector also is poverty reducing in some cases, but its magnitude is much smaller than that associated with the rural agricultural sector; and (iii) increased population in the mega cities has no role in poverty reduction. In fact, growth of population in mega cities is “poverty-increasing” in a few cases. Given that a rapid population growth or rural-urban migration is likely to increase poverty, more emphasis should be placed on policies that enhance support for rural agricultural sector and rural non-agricultural sector. If our analysis has any validity, serious doubts are raised about recent research emphasising the role of secondary towns or urbanisation as the main driver of extreme poverty reduction.

Keywords: Inequality, Poverty, Growth, Agriculture, Non-agriculture

Suggested Citation

Imai, Katsushi S. and Gaiha, Raghav and Garbero, Alessandra, Poverty Reduction During the Rural-Urban Transformation: Rural Development is Still More Important than Urbanisation? (May 30, 2014). Brooks World Poverty Institute Working Paper No. 204. Available at SSRN: https://ssrn.com/abstract=2456628 or http://dx.doi.org/10.2139/ssrn.2456628

Katsushi S. Imai (Contact Author)

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom

Raghav Gaiha

University of Delhi - Department of Economics ( email )

Delhi-110007
India

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Alessandra Garbero

International Fund for Agricultural Development (IFAD) ( email )

Via Paolo di Dono
Rome, 00142
Italy

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