Urban Poverty Dynamics in Bangladesh: Understanding Effects of Rapid Urbanization, Economic Shocks, and Internal Migration

This study investigates the nexus between urban poverty dynamics and rapid urbanization, urban growth, economic shocks, and internal migration to create novelty in the literature on urban poverty dynamics in Bangladesh. For this purpose, we conduct quantitative analysis for exploring the growth in urbanization and poverty in new versus existing urban areas using data from multiple Household Income and Expenditure Survey (HIES 2000, 2005, 2010 & 2016). Moreover, we investigate the linkages between rural-urban migration and urban poverty using population growth rate data from World Bank Development Indicators (WDI) and net rural-urban migration data from the Sample Vital Registration Survey (SVRS) of Bangladesh Bureau of Statistics. Logistic regression approach is used for our analytical purpose. Findings reveal higher prevalence of poverty in new urban areas compared to the existing one and this results in increase in urban poverty. This study also reveals that there is no statistically significant long-run relationship between the urban population growth rates and net rural-urban migration, implying that growing poverty in new urban areas is not because of rural-urban migration. Therefore, we underscore the need for targeted policy interventions and urban planning strategies to address the unique challenges of poverty in newly urbanized areas of Bangladesh.