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Economic growth, income inequality and poverty in china under economic reforms

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  • Shujie Yao
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    Abstract

    China's gross domestic product (GDP) more than quadrupled between 1978 and 1996 under economic reforms. Per capita disposable incomes more than tripled in the cities and almost quadrupled in the rural areas. However, rapid economic growth brought about large income inequality which slowed down poverty reduction. In 1995, there were still 70-170 million people living in poverty. This article aims to assess the relationship between economic growth, income inequality and poverty using both secondary and household survey data. The main findings are (1) urban/rural divide and spatial inequality are two major factors accounting for overall income inequality; (2) non-wage and non-farm incomes are more unequally distributed than wage and farm incomes; and (3) the incidence of poverty is very sensitive to the changes in per capita income and inequality.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00220389908422604
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

    Volume (Year): 35 (1999)
    Issue (Month): 6 ()
    Pages: 104-130

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    Handle: RePEc:taf:jdevst:v:35:y:1999:i:6:p:104-130

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    Cited by:
    1. Yao, Shujie & Zhang, Zongyi & Hanmer, Lucia, 2004. "Growing inequality and poverty in China," China Economic Review, Elsevier, vol. 15(2), pages 145-163.
    2. WANG, Zuxiang & SMYTH, Russell & NG, Yew-Kwang, 2009. "A new ordered family of Lorenz curves with an application to measuring income inequality and poverty in rural China," China Economic Review, Elsevier, vol. 20(2), pages 218-235, June.
    3. Wei, Kailei & Yao, Shujie & Liu, Aying, 2008. "Foreign Direct Investment and Regional Inequality in China," Working Paper Series RP2008/94, World Institute for Development Economic Research (UNU-WIDER).
    4. McCulloch, Neil & Calandrino, Michele, 2003. "Vulnerability and Chronic Poverty in Rural Sichuan," World Development, Elsevier, vol. 31(3), pages 611-628, March.
    5. Smyth, Russell & Inder, Brett, 2004. "Is Chinese provincial real GDP per capita nonstationary?: Evidence from multiple trend break unit root tests," China Economic Review, Elsevier, vol. 15(1), pages 1-24.
    6. Zhu, Nong & Luo, Xubei, 2008. "The impact of remittances on rural poverty and inequality in China," Policy Research Working Paper Series 4637, The World Bank.
    7. Nong Zhu & Xubei Luo, 2014. "The Impact of migration on rural poverty and inequality: a case study in China," CIRANO Working Papers 2014s-08, CIRANO.

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