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dc.titleRural Spillovers of Urban Growth
dc.contributor.authorAsher, Sam
dc.contributor.authorChauvin, Juan Pablo
dc.contributor.authorNovosad, Paul
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageIndia
dc.date.available2019-06-26T00:00:00
dc.date.issue2019-06-26T00:00:00
dc.description.abstractAs cities in developing countries continue to grow rapidly, there is little empirical evidence about how this affects growth in surrounding rural economies. We study the effects of shocks to labor demand in cities on village-level economic outcomes, using a new dataset with administrative data from multiple sources on the universe of urban and rural economies in India. We find that, over the period 1990-2013, urban shocks led to increases in aggregate economic activity and non-farm establishment size in villages located 20 km or farther away from their closest city. At the same time, distant villages experienced net population loss, as rural workers relocated closer to urban areas. Labor demand shocks in cities also led to a reconfiguration of the industry composition in surrounding rural economies, with the services sector gaining employment share in nearby villages, and the manufacturing sector gaining share in villages farther away.
dc.format.extent36
dc.identifier.doihttp://dx.doi.org/10.18235/0001756
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Rural_Spillovers_of_Urban_Growth_en_en.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectProductivity Growth
dc.subjectLabor Productivity
dc.subjectEconomic Development and Growth
dc.subjectUrbanization
dc.subjectGDP Growth
dc.subjectProductivity Shock
dc.subject.jelcodeO18 - Urban, Rural, Regional, and Transportation Analysis • Housing • Infrastructure
dc.subject.jelcodeO14 - Industrialization • Manufacturing and Service Industries • Choice of Technology
dc.subject.jelcodeR11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
dc.subject.jelcodeR12 - Size and Spatial Distributions of Regional Economic Activity
dc.subject.keywordsUrbanization in developing countries; geographic dispersion of shocks; urban-rural linkages
dc.typeDiscussion Papers
idb.identifier.pubnumberIDB-DP-00692
idb.operationRG-K1415
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