Does Urbanization Affect Rural Poverty? Evidence from Indian Districts
Although 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