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| Srl | Item |
| 1 |
ID:
182775
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| Summary/Abstract |
Miracle reductions in absolute poverty led China to announce, in late 2019, the strategic change from targeting absolute poverty to targeting relative poverty. After highlighting China's success in the fight against absolute poverty, this paper attempts to assess the roles of growth and income inequality in affecting both absolute and relative poverty rates. Poverty decomposition and panel-VAR modelling results show that growth played an overwhelming role in achieving the miracle of poverty reduction but relative poverty has been consistently rising. And growth, contrary to the case of absolute poverty, actually has contributed to the rising trend of relative poverty. Conversely, income inequality has played a small role in aggravating absolute poverty but a moderate role in raising relative poverty. Therefore, it seems appropriate for China to continue targeting absolute poverty with a higher poverty line. In the case that China insists on shifting the poverty alleviation strategy, market-led growth can no longer be relied on to reduce relative poverty. Instead, government-led pro-poor policies must be instituted by providing employment, education, training and other opportunities to the disadvantaged groups, in addition to the usual social assistance.
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| 2 |
ID:
186215
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| Summary/Abstract |
Using the last three waves of the rural household surveys conducted by the Chinese Household Income Project in 2007, 2013, and 2018, this paper focuses on changes in poverty in rural China. The paper decomposes poverty change into the growth effect and the inequality effect, and also decomposes the contributions of income components, concentrating particularly on income from public transfers. Economic growth had a very significant poverty reduction effect for both absolute and relative poverty, but the inequality effect mostly offset it; in total, absolute poverty reduced significantly, and relative poverty increased from 2007 to 2018. Local wage income became the main contributor to both absolute and relative poverty reduction, replacing household agricultural operational income, and the contribution of wage income from migration declined. Public transfers effectively reduced absolute poverty but not relative poverty.
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