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Lessons learned from China's fall into the poverty trap

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  • Cao, Shixiong
  • Wang, Xiuqing
  • Wang, Guosheng

Abstract

Most economists and policy-makers would now agree that economic growth - in the sense of rising per capita incomes or expenditures - reduces poverty in the developing world. However, it is also true that per capita data does not adequately account for individuals who have fallen into the poverty trap, as in China: a widening gap is developing between the rich and the poor due to a disparity in income and employment opportunities, among other factors, between rural and urban residents, and this gap is not reflected in mean (per capita) parameters. The present paper illustrates how the situation in China during the current period of reform should not be forgotten when other developing countries consider the pros and cons of China's rapid development.

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  • Cao, Shixiong & Wang, Xiuqing & Wang, Guosheng, 2009. "Lessons learned from China's fall into the poverty trap," Journal of Policy Modeling, Elsevier, vol. 31(2), pages 298-307.
    • Handle: RePEc:eee:jpolmo:v:31:y:2009:i:2:p:298-307
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    7. Guo, Junping & Qu, Song, 2021. "Multidimensional and Relative Poverty in Rural China: Evidence from Micro-Level Data of 6145 Households," 2021 Conference, August 17-31, 2021, Virtual 315040, International Association of Agricultural Economists.
    8. Cao, Shixiong, 2012. "Why China's approach to institutional change has begun to succeed," Economic Modelling, Elsevier, vol. 29(3), pages 679-683.
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    10. You, Jing, 2014. "Risk, under-investment in agricultural assets and dynamic asset poverty in rural China," China Economic Review, Elsevier, vol. 29(C), pages 27-45.
    11. Guo, Junping & Qu, Song & Zhu, Tiehui, 2022. "Estimating China’s relative and multidimensional Poverty: Evidence from micro-level data of 6145 rural households," World Development Perspectives, Elsevier, vol. 26(C).

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