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

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 inc...

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Main Authors: Fan, Shenggen, Chan-Kang, Connie, Mukherjee, Anit
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2005
Subjects:
Online Access:https://hdl.handle.net/10568/160648
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author Fan, Shenggen
Chan-Kang, Connie
Mukherjee, Anit
author_browse Chan-Kang, Connie
Fan, Shenggen
Mukherjee, Anit
author_facet Fan, Shenggen
Chan-Kang, Connie
Mukherjee, Anit
author_sort Fan, Shenggen
collection Repository of Agricultural Research Outputs (CGSpace)
description 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.
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spelling CGSpace1606482025-11-06T05:13:35Z Rural and urban dynamics and poverty: Evidence from China and India Fan, Shenggen Chan-Kang, Connie Mukherjee, Anit poverty investment policies industrialization 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. 2005 2024-11-21T09:51:27Z 2024-11-21T09:51:27Z Working Paper https://hdl.handle.net/10568/160648 en Open Access application/pdf International Food Policy Research Institute Fan, Shenggen; Chan-Kang, Connie; Mukherjee, Anit. Rural and urban dynamics and poverty: Evidence from China and India. FCND Discussion Paper 196. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160648
spellingShingle poverty
investment policies
industrialization
Fan, Shenggen
Chan-Kang, Connie
Mukherjee, Anit
Rural and urban dynamics and poverty: Evidence from China and India
title Rural and urban dynamics and poverty: Evidence from China and India
title_full Rural and urban dynamics and poverty: Evidence from China and India
title_fullStr Rural and urban dynamics and poverty: Evidence from China and India
title_full_unstemmed Rural and urban dynamics and poverty: Evidence from China and India
title_short Rural and urban dynamics and poverty: Evidence from China and India
title_sort rural and urban dynamics and poverty evidence from china and india
topic poverty
investment policies
industrialization
url https://hdl.handle.net/10568/160648
work_keys_str_mv AT fanshenggen ruralandurbandynamicsandpovertyevidencefromchinaandindia
AT chankangconnie ruralandurbandynamicsandpovertyevidencefromchinaandindia
AT mukherjeeanit ruralandurbandynamicsandpovertyevidencefromchinaandindia