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The evolution of growth, inequality and poverty in China: spatial and temporal aspects

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  • Luo, Xubei
  • Zhu, Nong

Abstract

This paper examines the growth performance and income inequality in eight Chinese provinces during the period of 1989–2006 using the China Health and Nutrition Survey data. It shows that income grew for all segments of the population, and as a result, poverty incidence has fallen. However, income growth has been uneven across different segments of the population - most rapidly in coastal areas and among the better educated – and followed a different pattern over time along with changes in distribution. A decomposition analysis based on household income determination suggests that income growth can largely be attributed to the increase in returns to education and to the shift of employment into secondary and tertiary sectors. As education is a key factor of production and the differential of returns to education increases over time, the narrowing of gaps in education can contribute to harmonizing income distribution in the long run.

Suggested Citation

  • Luo, Xubei & Zhu, Nong, 2011. "The evolution of growth, inequality and poverty in China: spatial and temporal aspects," 2011 ASAE 7th International Conference, October 13-15, Hanoi, Vietnam 290655, Asian Society of Agricultural Economists (ASAE).
    • Handle: RePEc:ags:asae11:290655
    DOI: 10.22004/ag.econ.290655
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