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How useful Is the Chinese Official Rural Poverty Line in Poverty Estimates?

Author

Listed:
  • Xiuqing Wang
  • Juan Liu
  • Shujie Yao
  • Xian Xin

    (College of Economics and Management, China Agricultural University Center for Rural Development Policy,China Agricultural University)

Abstract

We in this paper argue that the Chinese official poverty line substantially misestimates theactual rural poverty situations. We recalculate the rural poverty lines following Ravallion (1994) with rural household survey data of China¡¯s two provinces, Hubei and Inner Mongolia. The results indicate that the poverty lines derived from a pan-country level food bundle cannot fully reflect the regional poverty situation. Merely adjusting rural poverty lines at the country-level CPI without fully considering changes in the structure of food consumption and food prices with respect to different regions may also lead to wrong poverty estimates.

Suggested Citation

  • Xiuqing Wang & Juan Liu & Shujie Yao & Xian Xin, 2008. "How useful Is the Chinese Official Rural Poverty Line in Poverty Estimates?," Working Papers 0801, China Agricultural University, College of Economics and Management.
    • Handle: RePEc:cau:wpaper:0801
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    File URL: http://www.cau.edu.cn/cem/news/newsfj/2008E001.pdf
    File Function: First version, 2008
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    More about this item

    Keywords

    Rural poverty line; Rural poverty; China;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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