Economic Growth and Anti-Poverty in Rural China

XIA Qingjie1, SONG Lina2  and Simon APPLETON3

1 School of Economics, Peking University
2 School of Sociology and Social Policy, Nottingham University 3School of Economics, Nottingham University

Abstract:

Based on CHIP (Chinese household income project) survey data, this paper estimated the changes of absolute poverty and income disparity for the period of 1988-2002, as well as the impact of income growth and changes in income distribution on poverty reduction in rural China. The results show that absolute rural poverty fell sharply during this period, regardless of where the poverty line is set. Both the decomposition of poverty and the panel data analysis demonstrate that income growth causes a fall in poverty.

Key Words: China, rural poverty, household income, quantile analysis

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