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Chinese Poverty: Assessing The Impact Of Alternative Assumptions

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  • Camelia Minoiu
  • Sanjay G. Reddy

Abstract

This paper investigates how estimates of the extent and trend of consumption poverty in China between 1990 and 2004 vary as a result of alternative plausible assumptions concerning the poverty line and estimated levels of consumption. Our methodology focuses on the following sources of variation: purchasing power exchange rates (used to convert an international poverty line), alternative levels and distributions of private incomes, alternative estimates of the propensity to consume of different income groups, and alternative spatial and temporal price indices. We report national, urban and rural poverty estimates corresponding to distinct assumptions. It is widely believed that substantial poverty reduction took place in China in the 1990s, and we find this conclusion to be largely robust to the choice of assumptions, although estimates of the extent of Chinese poverty, and therefore of world poverty, in any year are greatly influenced by this choice. Copyright 2008 The Authors. Journal compilation 2008 International Association for Research in Income and Wealth Published by Blackwell Publishing.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 54 (2008)
Issue (Month): 4 (December)
Pages: 572-596

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Handle: RePEc:bla:revinw:v:54:y:2008:i:4:p:572-596

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References

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  1. John Gibson & Jikun Huang & Scott Rozelle, 2003. "Improving Estimates of Inequality and Poverty from Urban China's Household Income and Expenditure Survey," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(1), pages 53-68, 03.
  2. Fang, Cheng & Zhang, Xiaobo & Fan, Shenggen, 2002. "Emergence of urban poverty and inequality in China: evidence from household survey," China Economic Review, Elsevier, vol. 13(4), pages 430-443, December.
  3. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc.
  4. Jinjun Xue & Wei Zhong, 2003. "Unemployment, Poverty and Income Disparity in Urban China," Asian Economic Journal, East Asian Economic Association, vol. 17(4), pages 383-405, December.
  5. Chen, Shaohua & Ravallion, Martin, 2004. "How Have the World's Poorest Fared Since the Early 1980s?," Policy Research Working Paper Series 3341, The World Bank.
  6. Sanjay G. Reddy & Camelia Minoiu, 2007. "Has World Poverty Really Fallen?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(3), pages 484-502, 09.
  7. Yao, Shujie, 2000. "Economic Development and Poverty Reduction in China over 20 Years of Reforms," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 447-74, April.
  8. Datt, Gaurav, 1998. "Computational tools for poverty measurement and analysis," FCND discussion papers 50, International Food Policy Research Institute (IFPRI).
  9. Park, Albert & Wang, Sangui, 2001. "China's poverty statistics," China Economic Review, Elsevier, vol. 12(4), pages 384-398.
  10. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and ... Convergence, Period," The Quarterly Journal of Economics, MIT Press, vol. 121(2), pages 351-397, May.
  11. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
  12. Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, number 9780195136494, September.
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Citations

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Cited by:
  1. Lars Osberg & Jiaping Shao & Kuan Xu, 2007. "The Growth of Poor Children in China 1991-2000: Why Food Subsidies May Matter," Department of Economics at Dalhousie University working papers archive wider_nov_18_2007.pdf, Dalhousie, Department of Economics.
  2. Baafi Antwi, Joseph & Oppong Kwakye, Francis, 2010. "Globalization and its influence on Economic Growth performance," MPRA Paper 24608, University Library of Munich, Germany.
  3. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2007. "Globalization, consumerism and child labour," MPRA Paper 4370, University Library of Munich, Germany.
  4. Bjorn Gustafsson & Ximing Yue, 2012. "Rural people's perception of income adequacy in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(3), pages 264-280, October.
  5. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2007. "Foreign Capital, Return to Education and Child labour," MPRA Paper 2646, University Library of Munich, Germany.
  6. Jean-Louis Warnholz (QEH), . "Poverty Reduction for Profit? A Critical Examination of Business Opportunities at the Bottom of the Pyramid," QEH Working Papers qehwps160, Queen Elizabeth House, University of Oxford.
  7. Jean-Pierre Lachaud, 2005. "A la recherche de l’insaisissable dynamique de pauvreté au Burkina Faso. Une nouvelle évidence empirique," Documents de travail 117, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  8. Shi Li & Chuliang Luo & Terry Sicular, 2011. "Overview: Income Inequality and Poverty in China, 2002-2007," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 201110, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  9. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2011. "Poverty alleviation programs, FDI-led growth and child labour under agricultural dualism," MPRA Paper 29997, University Library of Munich, Germany.

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