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

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  • Shujie Yao

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.

Suggested Citation

  • Shujie Yao, 1999. "Economic growth, income inequality and poverty in china under economic reforms," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 104-130.
    • Handle: RePEc:taf:jdevst:v:35:y:1999:i:6:p:104-130
    DOI: 10.1080/00220389908422604
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    References listed on IDEAS

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    1. Hay, Donald & Morris, Derek & Liu, Guy & Yao, Shujie, 1994. "Economic Reform and State-Owned Enterprises in China 1979-87," OUP Catalogue, Oxford University Press, number 9780198288459, Decembrie.
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