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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.

Suggested Citation

  • 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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    References listed on IDEAS

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    Cited by:

    1. Cao, Shixiong, 2012. "Why China's approach to institutional change has begun to succeed," Economic Modelling, Elsevier, vol. 29(3), pages 679-683.
    2. Cao, Shixiong & Wang, Xiuqing & Song, Yuezhen & Chen, Li & Feng, Qi, 2010. "Impacts of the Natural Forest Conservation Program on the livelihoods of residents of Northwestern China: Perceptions of residents affected by the program," Ecological Economics, Elsevier, vol. 69(7), pages 1454-1462, May.
    3. Germaschewski, Yin, 2013. "Reserve financing and government infrastructure investment: An application to China," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 992-1013.
    4. 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.
    5. Cao, Shixiong, 2012. "Socioeconomic value of religion and the impacts of ideological change in China," Economic Modelling, Elsevier, vol. 29(6), pages 2621-2626.
    6. Shixiong Cao & Yuan Lv & Heran Zheng & Xin Wang, 2015. "Research of the Risk Factors of China’s Unsustainable Socioeconomic Development: Lessons for Other Nations," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(2), pages 337-347, September.

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