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Growth and Common Prosperity in China

Author

Listed:
  • Nanak Kakwani
  • Xiaobing Wang
  • Ning Xue
  • Peng Zhan

Abstract

This paper introduces a decomposition method that quantifies the contributions to common prosperity of labor market performance and social policies and extends the idea of shared prosperity to a new measure of inequity in opportunities. The resulting common prosperity indices and opportunity equality indices are then applied to five waves of the Chinese Household Income Project data from 1988 to 2018. This paper shows that the labor market performance and social policies have been improving over the last 30 years and have helped China move towards common prosperity for everyone. The indices developed in this paper allow us to quantify the extent of shared prosperity that a country has achieved and to carry out empirical studies on which policy is working and which is not. It can also help us identify the fundamental causes of inequality and aid us in achieving equality in opportunity among all members of society.

Suggested Citation

  • Nanak Kakwani & Xiaobing Wang & Ning Xue & Peng Zhan, 2022. "Growth and Common Prosperity in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(1), pages 28-57, January.
    • Handle: RePEc:bla:chinae:v:30:y:2022:i:1:p:28-57
    DOI: 10.1111/cwe.12401
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    References listed on IDEAS

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    Cited by:

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    3. Jiale Yan & Zhengyuan Tang & Yinuo Guan & Mingjian Xie & Yongjian Huang, 2023. "Analysis of Measurement, Regional Differences, Convergence and Dynamic Evolutionary Trends of the Green Production Level in Chinese Agriculture," Agriculture, MDPI, vol. 13(10), pages 1-18, October.
    4. Yun Qin & Jinlong Xu & Hexiong Zhang & Wenqin Ren, 2022. "The Measurement of the Urban–Rural Integration Level of Resource-Exhausted Cities—A Case Study of Zaozhuang City, China," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    5. Xiang-Fei Ma & Ru Zhang & Yi-Fan Ruan, 2022. "Evaluation of Common Prosperity Level and Regional Difference Based on the Background of Green Development," Sustainability, MDPI, vol. 14(23), pages 1-13, November.
    6. Anson Au, 2023. "Reassessing the econometric measurement of inequality and poverty: toward a cost-of-living approach," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    7. Zhou Jiang & Maoxia Zeng & Mingming Shi, 2023. "E‐commerce and Consumption Inequality in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(5), pages 61-86, September.
    8. Limin Wen & Shufang Sun, 2023. "Can China's new rural pension scheme alleviate the relative poverty of rural households? An empirical analysis based on the PSM‐DID method," Australian Economic Papers, Wiley Blackwell, vol. 62(3), pages 396-429, September.
    9. Li Chen & Yuanbo Zhang, 2023. "Does the Development of the Digital Economy Promote Common Prosperity?—Analysis Based on 284 Cities in China," Sustainability, MDPI, vol. 15(5), pages 1-16, March.
    10. Peter Rangazas & Xiaobing Wang & Yuxiang Zou, 2022. "China's efficient urban bias," Pacific Economic Review, Wiley Blackwell, vol. 27(3), pages 223-253, August.
    11. Liu, Yang & Dong, Xiucheng & Dong, Kangyin, 2023. "Pathway to prosperity? The impact of low-carbon energy transition on China's common prosperity," Energy Economics, Elsevier, vol. 124(C).

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