Research Papers in Economics, Department of Economics, Stockholm University
The Dual Policy in the Dual Economy - The Political Economy of Urban Bias in Dictatorial Regimes
Abstract: One of the most common policy obstacles in the global
effort against poverty is what is termed as “urban bias” where rural
residents, who constitute majority of the poor in the world, face
systematic bias against their economic interests by their own governments.
This paper develops a simple political economy model of urban bias in
dictatorial regimes. Equilibrium outcomes relating policy outcomes with
economic structure, political power, and other behavioral and structural
variables are analyzed. The model shows that anti-agricultural biases can
emerge in primarily agrarian societies even if there is no bias in
political power between urban and rural citizens. Evidence from recent
World Bank country level panel data on biases against/for agriculture
provides support for the model’s prediction.
Keywords: Urban bias; rural poverty; dictatorship; (follow links to similar papers)
JEL-Codes: D72; O17; O20; P48; R00; (follow links to similar papers)
24 pages, May 15, 2011
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Sten Nyberg ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom