Does urbanization have spatial spillover effect on poverty reduction: empirical evidence from rural China

Ziyi Wang, Debin Ma, Jingxiang Zhang, Yu Wang and Dongqi Sun

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 1, 2167730

Abstract: In light of a scarcity of research on the spatial effects of urbanization on poverty reduction, this study uses panel data on 30 provinces in China from 2009 to 2019 to construct a system of indices to assess poverty that spans the four dimensions of the economy, education, health, and living. We use the spatial autocorrelation test and the spatial Durbin model (SDM) to analyze the spatial effects of urbanization on poverty reduction in these different dimensions. The main conclusions are as follows: (a) China’s urbanization has the characteristics of spatial aggregation and a spatial spillover effect. (b) Different dimensions of poverty had the attributes of spatial agglomeration, and Moran’s index of a reduction in economic poverty was the highest. Under the SDM, the different dimensions of poverty also showed a significant positive spatial correlation. (c) Urbanization has a significant effect on poverty reduction along the dimensions of the economy, education, and living, but has little effect on reducing health poverty. It has a spatial spillover effect on poverty reduction in economic and living contexts. (d) There were spatial differences in the effect of urbanization on relieving economic and living-related poverty.

Date: 2023
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DOI: 10.1080/1331677X.2023.2167730

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