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To answer this question we develop an estimable micro model of consumption growth allowing for constraints on factor mobility and externalities, whereby geographic capital can influence the productivity of a household's own capital. Our statistical test has considerable power in detecting geographic effects given that we control for latent heterogeneity in measured consumption growth rates at the micro level. We find robust evidence of geographic poverty traps in farm\u2010household panel data from post\u2010reform rural China. Our results strengthen the equity and efficiency case for public investment in lagging poor areas in this setting. Copyright \u00a9 2002 John Wiley &amp; Sons, Ltd.<\/jats:p>","DOI":"10.1002\/jae.645","type":"journal-article","created":{"date-parts":[[2002,8,27]],"date-time":"2002-08-27T01:27:27Z","timestamp":1030411647000},"page":"329-346","source":"Crossref","is-referenced-by-count":319,"title":["Geographic poverty traps? 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