Calì, MassimilianoMenon, Carlo2013-01-252013-01-252013-01https://hdl.handle.net/10986/12162Although a high rate of urbanization and a high incidence of rural poverty are two distinct features of many developing countries, there is little knowledge of the effects of the former on the latter. Using a large sample of Indian districts from the 1983-1999 period, the authors find that urbanization has a substantial and systematic poverty-reducing effect in the surrounding rural areas. The results obtained through an instrumental variable estimation suggest that this effect is causal in nature and is largely attributable to the positive spillovers of urbanization on the rural economy rather than to the movement of the rural poor to urban areas. This rural poverty-reducing effect of urbanization is primarily explained by increased demand for local agricultural products and, to a lesser extent, by urban-rural remittances, the rural land/population ratio, and rural nonfarm employment.en-USCC BY 3.0 IGOACCESS TO MARKETSADULT POPULATIONAGRICULTURAL EMPLOYMENTAGRICULTURAL LABORERSAGRICULTURAL LANDAGRICULTURAL PRODUCTIVITYAGRICULTURAL PRODUCTIVITY GROWTHAGRICULTURAL PRODUCTSAGRICULTURAL TRADEAGRICULTURAL WAGESAGRICULTURAL WORKERSARID TROPICSCAPACITY BUILDINGCHILD LABORCHRONIC POVERTYCOMPARATIVE ADVANTAGECONSUMER PRICESCONSUMPTION DATACOVARIANCE MATRIXCREDIT MARKETSCROP PRODUCTIONCULTURAL CHANGEDAILY WAGEDEMAND FOR FOODDEPENDENT VARIABLEDESCRIPTIVE STATISTICSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING REGIONSDEVELOPING WORLDDEVELOPMENT ECONOMICSDEVELOPMENT POLICIESDEVELOPMENT POLICYDEVELOPMENT REPORTDISTRIBUTION FUNCTIONDIVERSIFICATIONECONOMETRIC MODELSECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC CHANGESECONOMIC CONDITIONSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC POLICYECONOMIC REFORMSEMPIRICAL EVIDENCEEMPIRICAL SECTIONESTIMATION METHODEXPLANATORY VARIABLESFARM EMPLOYMENTFARMERSFIXED EFFECTSFIXED EFFECTS ESTIMATIONFOOD PRODUCTSFUTURE POPULATIONGLOBAL POVERTYGROWTH RATEHEADCOUNT RATIOHIGH GROWTHHOUSEHOLD COMPOSITIONHOUSEHOLD SURVEYIMMIGRANTIMMIGRANTSIMMIGRATIONIMPLICATIONS FOR DEVELOPMENTIMPORTANT POLICYINCIDENCE OF POVERTYINCOMEINCOME INEQUALITYINDEPENDENT VARIABLEINDUSTRIAL REVOLUTIONINDUSTRIALIZATIONINSURANCEINTERNAL MIGRANTSINTERNATIONAL TRADELABOR FORCELABOR MARKETLABOR SUPPLYLAGGED VALUESLAND PRICESLAND PRODUCTIVITYLAND REFORMLAND SUPPLYLANDLESS HOUSEHOLDSLEVEL OF POVERTYMARGINAL RETURNSMEAN VALUEMIGRANTMIGRATION FLOWSMONETARY ECONOMICSNATIONAL COUNCILNATIONAL LEVELSNATURAL RESOURCESNEGATIVE EFFECTNUMBER OF MIGRANTSNUMBER OF PEOPLENUTRITIONPER CAPITA EXPENDITUREPOLICY DISCUSSIONSPOLICY IMPLICATIONSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPOOR PEOPLEPOOR POPULATIONPOORER PEOPLEPOPULATION AND DEVELOPMENTPOPULATION DATAPOPULATION DECREASESPOPULATION DENSITYPOPULATION DYNAMICSPOPULATION VARIABLEPOPULATION VARIABLESPOVERTY CHANGEPOVERTY DATAPOVERTY DECLINEPOVERTY DYNAMICSPOVERTY ESTIMATESPOVERTY GAPPOVERTY GAP INDEXPOVERTY IMPACTPOVERTY INCIDENCEPOVERTY LEVELSPOVERTY LINEPOVERTY LINESPOVERTY MEASUREPOVERTY PROFILEPOVERTY RATESPOVERTY REDUCINGPOVERTY REDUCTIONPOVERTY REDUCTION IMPACTPRODUCTION VOLUMESPROGRESSPUBLIC INVESTMENTPUBLIC POLICIESPULL FACTORSPUSH FACTORPUSH FACTORSRATE OF GROWTHREDUCTION IN POVERTYREGIONAL IMPACTSREGIONAL PERSPECTIVERELATIVE CONTRIBUTIONRELATIVE IMPORTANCEREMITTANCEREMITTANCESRESOURCE CONSTRAINTSRESPECTRISK FACTORSRURALRURAL AREARURAL AREASRURAL BANKRURAL BANKSRURAL CONSUMERRURAL CONSUMERSRURAL DEVELOPMENTRURAL DISTRICTRURAL ECONOMYRURAL EMPLOYMENTRURAL HOUSEHOLDSRURAL LABORRURAL LINKAGERURAL LINKAGESRURAL MIGRANTSRURAL MIGRATIONRURAL PEOPLERURAL POLICYRURAL POORRURAL POPULATIONRURAL POVERTYRURAL POVERTY LINERURAL POVERTY RATERURAL POVERTY REDUCTIONRURAL ROADSRURAL SCHOOLINGRURAL SECTORRURAL VILLAGESRURAL WAGESRURAL WELFARERURAL WORKERSSELF-EMPLOYMENTSERIAL CORRELATIONSIGNIFICANT EFFECTSMALL VILLAGESSOCIAL SCIENCESPATIAL SCALESPILLOVERSTRUCTURAL TRANSFORMATIONTRADABLE SECTORSTRADE LIBERALIZATIONUNEQUAL DISTRIBUTIONURBAN AREASURBAN DWELLERSURBAN GROWTHURBAN MIGRATIONURBAN POORURBAN POPULATIONURBAN POPULATION DISTRIBUTIONURBAN POPULATION GROWTHURBAN POPULATIONSURBAN POVERTYURBAN WORKERSURBANIZATIONWATER SOURCESWELFARE IMPACTWORKFORCEWORKING POPULATIONWORLD POPULATIONYOUNG ADULTYOUNG ADULTSWorld Bank10.1596/1813-9450-6338