ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Growth and Poverty-The Urban Legend

The Urban Legend Arup Mitra This paper examines if the 'trickle down mechanism' of growth on poverty can be asserted in the urban areas in India. Empirical evidence does not support this view as the role of income growth originating from manufacturing and tertiary sectors in tackling urban poverty is mostly found to be marginal over time. However, as per the results corresponding to cross-section data and time-series-cross-section pooled data industrialisation with rapid employment growth is suggested as a policy variable for reducing urban poverty.

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