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Income growth, inequality and poverty reduction: A case study of eight provinces in China

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  • GOH, Chor-ching
  • LUO, Xubei
  • ZHU, Nong

Abstract

This paper examines the growth performance and income inequality in eight Chinese provinces during the period of 1989-2004 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, most rapidly in coastal areas, and among the educated. 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.

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  • GOH, Chor-ching & LUO, Xubei & ZHU, Nong, 2009. "Income growth, inequality and poverty reduction: A case study of eight provinces in China," China Economic Review, Elsevier, vol. 20(3), pages 485-496, September.
  • Handle: RePEc:eee:chieco:v:20:y:2009:i:3:p:485-496
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. LABAR, Kelly & BRESSON, Florent, 2011. "A multidimensional analysis of poverty in China from 1991 to 2006," China Economic Review, Elsevier, vol. 22(4), pages 646-668.
    2. Wu, Alfred M. & Ramesh, M., 2014. "Poverty Reduction in Urban China: The Impact of Cash Transfers," MPRA Paper 54358, University Library of Munich, Germany.
    3. Ankita Mishra & Ranjan Ray, 2010. "Multi Dimensional Deprivation in the Awakening Giants: A Comparative Study on Micro Data," Monash Economics Working Papers 53-10, Monash University, Department of Economics.
    4. Ranjan Ray & Kompal Sinha, 2015. "Multidimensional Deprivation in China, India and Vietnam: A Comparative Study on Micro Data," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 16(1), pages 69-93, February.
    5. Kanbur, Ravi & Wang, Yue & Zhang, Xiaobo, 2017. "The Great Chinese Inequality Turnaround," IZA Discussion Papers 10635, Institute for the Study of Labor (IZA).
    6. Qi, Di & Wu, Yichao, 2016. "The extent and risk factors of child poverty in urban China — What can be done for realising the Chinese government goal of eradicating poverty before 2020," Children and Youth Services Review, Elsevier, vol. 63(C), pages 74-82.
    7. Cheong, Tsun Se & Wu, Yanrui, 2014. "The impacts of structural transformation and industrial upgrading on regional inequality in China," China Economic Review, Elsevier, vol. 31(C), pages 339-350.
    8. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
    9. Hua Zhou & Di Mo & Renfu Luo & Ai Yue & Scott Rozelle, 2016. "Are Children with Siblings Really More Vulnerable Than Only Children in Health, Cognition and Non-cognitive Outcomes? Evidence from a Multi-province Dataset in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(3), pages 3-17, May.
    10. Gordon Anderson & Tongtong Hao & Maria Grazia Pittau, 2016. "Income Inequality, Family Formation and Generational Mobility in Urban China," Working Papers tecipa-563, University of Toronto, Department of Economics.
    11. Bhattacharya, Sukanta & Saha, Sarani & Banerjee, Sarmila, 2016. "Income inequality and the quality of public services: A developing country perspective," Journal of Development Economics, Elsevier, vol. 123(C), pages 1-17.
    12. Pervez Zammurad Janjua & Usman Ahmad Kamal, 2011. "The Role of Education and Income in Poverty Alleviation: A Cross-Country Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(1), pages 143-172, Jan-Jun.
    13. repec:kap:asiapa:v:35:y:2018:i:1:d:10.1007_s10490-017-9519-y is not listed on IDEAS
    14. Ray, Ranjan & Mishra, Ankita, 2012. "Multi-dimensional deprivation in the awakening giants: A comparison of China and India on micro data," Journal of Asian Economics, Elsevier, vol. 23(4), pages 454-465.

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