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Poverty Exit and Entry in Poor Villages in China

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  • Zhang, Yumei
  • Filipski, Mateusz
  • Chen, Kevin
  • Diao, Xinshen

Abstract

Rapid economic growth in China’s booming regions has left other areas of the country lagging behind. We shed light on the poverty dynamics of one such region by analyzing a census-like survey of three administrative villages of Guizhou province in 2004, 2006, 2009, and 2011. While the absolute poverty rate is decreasing sharply in the sample, households are highly vulnerable to shocks, and rates of entry or re-entry into poverty are high. Using logistic regression and multivariate a hazard model, we look for the determinants of both poverty exit and entry. We find that poverty entry and exit are both related to household characteristics, assets, and social capital. Rural-urban migration strongly increases the probability of poverty exit, while poverty entry is associated with disease and some major life events. Our results also point to informal networks and government transfers as means of poverty alleviation, and highlight the importance of smart targeting.

Suggested Citation

  • Zhang, Yumei & Filipski, Mateusz & Chen, Kevin & Diao, Xinshen, 2014. "Poverty Exit and Entry in Poor Villages in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 173100, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:173100
    DOI: 10.22004/ag.econ.173100
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    File URL: https://ageconsearch.umn.edu/record/173100/files/poverty_entry_exit6_submit.pdf
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    References listed on IDEAS

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    1. Katsushi S. Imai & Jing You, 2014. "Poverty Dynamics of Households in Rural China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(6), pages 898-923, December.
    2. Wan, Guanghua & Zhang, Yuan, 2013. "Chronic and transient poverty in rural China," Economics Letters, Elsevier, vol. 119(3), pages 284-286.
    3. Glauben, Thomas & Herzfeld, Thomas & Rozelle, Scott & Wang, Xiaobing, 2012. "Persistent Poverty in Rural China: Where, Why, and How to Escape?," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 784-795.
    4. Zhang, Yin & Wan, Guanghua, 2006. "The impact of growth and inequality on rural poverty in China," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 694-712, December.
    5. anonymous, 1986. "1986 fee schedule for priced services," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jan, pages 1-28.
    6. Björn Gustafsson & Ding Sai, 2009. "Temporary And Persistent Poverty Among Ethnic Minorities And The Majority In Rural China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(s1), pages 588-606, July.
    7. McCulloch, Neil & Calandrino, Michele, 2003. "Vulnerability and Chronic Poverty in Rural Sichuan," World Development, Elsevier, vol. 31(3), pages 611-628, March.
    8. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
    9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
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    Keywords

    Food Security and Poverty; International Development;

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