Geographic poverty caused by distance to market

Weiming Li, Shixiong Cao

Article ID: 4535
Vol 8, Issue 7, 2024

VIEWS - 1505 (Abstract)

Abstract


Poverty is a key challenge to socioeconomic development globally. However, the degree to which distance from a market contributes to poverty remains unclear. To provide insights into this relationship, we quantified the relationships between distance from markets and the per capita income of rural and urban people in China based on data from 29 provinces and 2651 counties. Our results illustrate the existence of a “geographical curse”; that is, a large separation between producers and consumers can exacerbate poverty for less-affluent rural residents, who pay a larger proportion of their income to send their products to market and to purchase goods from those markets. Programs to alleviate poverty should therefore consider seeking solutions associated with reducing the impact of that distance, such as subsidizing the transport of goods, improving the transportation infrastructure, supporting innovative business practices, and balancing the locations of producers and their markets.


Keywords


geographical poverty traps; distance to market; travel distance threshold; remote regions; transaction cost

Full Text:

PDF


References


Barbier, E. B., & Hochard, J. P. (2018). Land degradation and poverty. Nature Sustainability, 1(11), 623–631. https://doi.org/10.1038/s41893-018-0155-4 Barrett, C. B., Travis, A. J., & Dasgupta, P. (2011). On biodiversity conservation and poverty traps. Proceedings of the National Academy of Sciences, 108(34), 13907–13912. https://doi.org/10.1073/pnas.1011521108 Barrett, C. B., & Bevis, L. E. M. (2015). The self-reinforcing feedback between low soil fertility and chronic poverty. Nature Geoscience, 8(12), 907–912. https://doi.org/10.1038/ngeo2591 Baum-Snow, N., Henderson, J. V., Turner, M., et al. (2018). Does Investment in National Highways Help or Hurt Hinterland City Growth? National Bureau of Economic Research. https://doi.org/10.3386/w24596 Berliant, M. & Konishi, H. (2000). The endogenous formation of a city: population agglomeration and marketplaces in a location-specific production economy. Regional Science & Urban Economics, 30, 289-324. Blumenstock, J. E. (2016). Fighting poverty with data. Science, 353(6301), 753–754. https://doi.org/10.1126/science.aah5217 Cao, S., Wang, X., & Wang, G. (2009). Lessons learned from China’s fall into the poverty trap. Journal of Policy Modeling, 31(2), 298–307. https://doi.org/10.1016/j.jpolmod.2008.09.004 Cao, S., Zheng, X., Chen, L., et al. (2017). Using the green purchase method to help farmers escape the poverty trap in semiarid China. Agronomy for Sustainable Development, 37(2). https://doi.org/10.1007/s13593-017-0420-3 Centers for Disease Control and Prevention. (2010). Racial/ethnic disparities and geographic differences in lung cancer incidence—38 states and the District of Columbia, 1998–2006. Morbidity and Mortality Weekly Report, 59, 1433-1438. Chenery, H. (1986) Growth and Transformation. Oxford University Press. Chin, G. (2015). Attacking the problem of extreme poverty. Science, 348(6236), 768–768. https://doi.org/10.1126/science.348.6236.768-q Collier, P. (2007). Poverty reduction in Africa. Proceedings of the National Academy of Sciences, 104(43), 16763–16768. https://doi.org/10.1073/pnas.0611702104 Crespo Cuaresma, J., Fengler, W., Kharas, H., et al. (2018). Will the Sustainable Development Goals be fulfilled? Assessing present and future global poverty. Palgrave Communications, 4(1). https://doi.org/10.1057/s41599-018-0083-y Gray, L. C. & Moseley, W. G. (2005). A geographical perspective on poverty–environment interactions. The Geographical Journal, 171(1), 9–23. Portico. https://doi.org/10.1111/j.1475-4959.2005.00146.x Grieco, M. (2015). Poverty mapping and sustainable transport: A neglected dimension. Research in Transportation Economics, 51, 3–9. https://doi.org/10.1016/j.retrec.2015.07.002 Guo, Y., Zhou, Y., & Cao, Z. (2019). Geographical patterns and anti-poverty targeting post-2020 in China. Journal of Geographical Sciences, 28, 1810-1824. Hansen, B.E., (1999). Threshold effects in non-dynamic panels: estimation, testing, and inference. Journal of Economics, 93, 345–368. Hanson, G. H. (2005). Market potential, increasing returns and geographic concentration. Journal of International Economics, 67(1), 1–24. https://doi.org/10.1016/j.jinteco.2004.09.008 Hassan, R., & Birungi, P. (2011). Social capital and poverty in Uganda. Development Southern Africa, 28(1), 19–37. https://doi.org/10.1080/0376835x.2011.545168 Howells, J. (2005). Innovation and regional economic development: A matter of perspective? Research Policy, 34(8), 1220–1234. https://doi.org/10.1016/j.respol.2005.03.014 Hubacek, K., Baiocchi, G., Feng, K., et al. (2017). Poverty eradication in a carbon constrained world. Nature Communications, 8(1). https://doi.org/10.1038/s41467-017-00919-4 Hyden, G. (2007). Governance and poverty reduction in Africa. Proceedings of the National Academy of Sciences, 104(43), 16751–16756. https://doi.org/10.1073/pnas.0700696104 Kates, R. W., & Dasgupta, P. (2007). African poverty: A grand challenge for sustainability science. Proceedings of the National Academy of Sciences, 104(43), 16747–16750. https://doi.org/10.1073/pnas.0708566104 Konishi, H. (2000). Formation of Hub Cities: Transportation Cost Advantage and Population Agglomeration. Journal of Urban Economics, 48(1), 1–28. https://doi.org/10.1006/juec.1999.2150 Kroft, K., Lange, F., Notowidigdo, M. J., et al. (2016). Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Nonparticipation. Journal of Labor Economics, 34(S1), S7–S54. https://doi.org/10.1086/682390 Krueger, A. B., & Malečková, J. (2003). Education, Poverty and Terrorism: Is There a Causal Connection? Journal of Economic Perspectives, 17(4), 119–144. https://doi.org/10.1257/089533003772034925 Lade, S. J., Haider, L. J., Engström, G., et al. (2017). Resilience offers escape from trapped thinking on poverty alleviation. Science Advances, 3(5). https://doi.org/10.1126/sciadv.1603043 Louveaux, F., Thisse, J. F., & Beguin, H. (1982). Location theory and transportation costs. Regional Science & Urban Economics, 12, 529-545. Ma, Z., Chen, X., & Chen, H. (2018). Multi-scale Spatial Patterns and Influencing Factors of Rural Poverty: A Case Study in the Liupan Mountain Region, Gansu Province, China. Chinese Geographical Science, 28(2), 296–312. https://doi.org/10.1007/s11769-018-0943-9 Mabogunje, A. L. (2007). Tackling the African “poverty trap”: The Ijebu-Ode experiment. Proceedings of the National Academy of Sciences, 104(43), 16781–16786. https://doi.org/10.1073/pnas.0704765104 Murphy, K. M., Shleifer, A., & Vishny, R. W. (1989). Industrialization and the Big Push. Journal of Political Economy, 97(5), 1003–1026. https://doi.org/10.1086/261641 National Bureau of Statistics. (2017). Statistical Yearbook of China. China Statistics Press. National Bureau of Statistics. (2017). Statistical Communique on National Economy and Social Development of China. China Statistics Press. Okwi, P. O., Ndeng’e, G., Kristjanson, P., et al. (2007). Spatial determinants of poverty in rural Kenya. Proceedings of the National Academy of Sciences, 104(43), 16769–16774. https://doi.org/10.1073/pnas.0611107104 Partridge, M., Bollman, R. D., Olfert, M. R., et al. (2007). Riding the Wave of Urban Growth in the Countryside: Spread, Backwash, or Stagnation? Land Economics, 83(2), 128–152. https://doi.org/10.3368/le.83.2.128 Serageldin, I. (2002). World Poverty and Hunger--the Challenge for Science. Science, 296(5565), 54–58. https://doi.org/10.1126/science.1072035 Vinod, T. (2010). Spatial differences in poverty: the case of Peru. Journal of Development Economics, 7, 85-98. Weinhold, D., & Reis, E. (2008). Transportation costs and the spatial distribution of land use in the Brazilian Amazon. Global Environmental Change, 18(1), 54–68. https://doi.org/10.1016/j.gloenvcha.2007.06.004 Yu, C., & Luo, Z. (2018). What are China’s real gains within global value chains? Measuring domestic value added in China’s exports of manufactures. China Economic Review, 47, 263–273. https://doi.org/10.1016/j.chieco.2017.08.010 Yunus, M. (1998). Alleviating Poverty Through Technology. Science, 282(5388), 409–410. https://doi.org/10.1126/science.282.5388.409 Zhang, C., Zhou, B., & Wang, Q. (2019). Effect of China’s western development strategy on carbon intensity. Journal of Cleaner Production, 215, 1170–1179. https://doi.org/10.1016/j.jclepro.2019.01.136 Zhang, H. (2014). The poverty trap of education: Education–poverty connections in Western China. International Journal of Educational Development, 38, 47–58. https://doi.org/10.1016/j.ijedudev.2014.05.003



DOI: https://doi.org/10.24294/jipd.v8i7.4535

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Weiming Li, Shixiong Cao

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.