Poverty Reduction During the Rural–Urban Transformation – The Role of the Missing Middle

Luc Christiaensen and Yasuyuki Todo

World Development, 2014, vol. 63, issue C, 43-58

Abstract: As countries develop, they restructure away from agriculture and urbanize. But structural transformation and urbanization patterns differ substantially, with some countries fostering migration out of agriculture into rural off farm activities and secondary towns, and others undergoing rapid agglomeration in mega cities. Using cross-country panel data for developing countries spanning 1980–2004, it is found that migration out of agriculture into the missing middle (rural nonfarm economy and secondary towns) yields more inclusive growth patterns and faster poverty reduction than agglomeration in mega cities. This suggests that patterns of urbanization deserve much more attention when striving for faster poverty reduction.

Keywords: poverty; rural–urban transformation; rural nonfarm economy; structural transformation; urban concentration (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (63)

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Related works:
Working Paper: Poverty reduction during the rural-urban transformation: the role of the missing middle (2013)
Working Paper: Poverty Reduction during the Rural-Urban Transformation - The Role of the Missing Middle (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:63:y:2014:i:c:p:43-58

DOI: 10.1016/j.worlddev.2013.10.002

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