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The dual policy in the dual economy - The political economy of urban bias in dictatorial regimes
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
2013 (English)In: Journal of Development Economics, ISSN 0304-3878, Vol. 105, 77-85 p.Article in journal (Refereed) Published
Abstract [en]

In many developing countries, public resource allocation is often biased against the rural population. Since a vast majority of the poor live in rural areas, the bias is highlighted as one of the most important institutional factors contributing to poverty. This paper develops a political economy model of urban bias in a dictatorial regime. A novel result of the model is that urban bias can emerge in predominantly agrarian economies even if there is no bias in political power toward urban residents. The empirical evidence from a recently compiled country-level panel dataset on agricultural taxes/subsidies is consistent with the prediction of the model.

Place, publisher, year, edition, pages
2013. Vol. 105, 77-85 p.
Keyword [en]
Urban bias, Rural poverty, Dictatorship
National Category
Business Administration
URN: urn:nbn:se:su:diva-97660DOI: 10.1016/j.jdeveco.2013.07.005ISI: 000327106300007OAI: diva2:680403


Available from: 2013-12-18 Created: 2013-12-16 Last updated: 2013-12-18Bibliographically approved

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Shifa, Abdulaziz B.
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