Density, Distance, and Division: Rural Poverty in a Developing-Country Context

The 3Ds, namely, density, distance, and division, are important for regional economic development and are integrated into a 3D analytical framework in the 2009 World Development Report. Few empirical studies have examined the relevance of the 3D framework for explaining rural poverty in a developing-country context. The effects of density on poverty are seldom studied, and distances to different layers of city centers on poverty may vary across different contexts. This paper aims to fill these gaps. Examining the case of Guizhou Province in China and adopting methods of the ordinary least square, instrument variable, and spatial econometrics, we find the evidence of the 3D framework for explaining rural poverty at the county level. Population density has a negative effect on rural poverty, while division, as measured by share of the ethnic minority population, has a positive effect. The effects of distance are mixed. Distance to Guiyang, which is the provincial political-economic center of Guizhou province, has a negative effect on rural poverty, whereas distance to the local city center has no effect. These results can provide important policy implications for local poverty-alleviation.