IDEAS home Printed from https://ideas.repec.org/p/ess/wpaper/id2886.html
   My bibliography  Save this paper

Poverty and Vulnerability in Rural China: Effects of Taxation

Author

Listed:
  • Xiaobing Wang
  • Woojin Kang
  • Katsushi S. Imai

Abstract

This paper studies the impact of taxation on poverty and ex ante vulnerability of households in rural China based on national household survey data in 1988, 1995 and 2002. It has been confirmed that i) poverty and vulnerability have reduced significantly with a great deal of geographical disparity, ii) education, land, and access to infrastructure and irrigation facilities are among the key factors to reduce vulnerability, and iii) the highly regressive tax system increased farmer’s poverty and vulnerability. The abolishment of rural tax since 2006 would thus have a significant negative impact on both poverty and vulnerability of rural households. [Working Paper No. 156]

Suggested Citation

  • Xiaobing Wang & Woojin Kang & Katsushi S. Imai, 2010. "Poverty and Vulnerability in Rural China: Effects of Taxation," Working Papers id:2886, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2886
    Note: Institutional Papers
    as

    Download full text from publisher

    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=Document12192010560.8352014.pdf&fcategory=Articles&AId=2886&fref=repec
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Wan, Guanghua & Zhang, Xiaobo, 2006. "Rising inequality in China," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 651-653, December.
    2. Chen, Shaohua & Ravallion, Martin, 2008. "China is poorer than we thought, but no less successful in the fight against poverty," Policy Research Working Paper Series 4621, The World Bank.
    3. Knight, John & Song, Lina, 1999. "The Rural-Urban Divide: Economic Disparities and Interactions in China," OUP Catalogue, Oxford University Press, number 9780198293309.
    4. Gustafsson,Björn A. & Shi,Li & Sicular,Terry (ed.), 2008. "Inequality and Public Policy in China," Cambridge Books, Cambridge University Press, number 9780521870450.
    5. Jalan, Jyotsna & Ravallion, Martin, 2001. "Household income dynamics in rural China," Policy Research Working Paper Series 2706, The World Bank.
    6. Raghbendra Jha & Katsushi S. Imai & Raghav Gaiha, 2008. "Poverty, Undernutrition and Vulnerability in Rural India: Public Works versus Food Subsidy," ASARC Working Papers 2008-08, The Australian National University, Australia South Asia Research Centre.
    7. Yuan Zhang & Guanghua Wan, 2006. "An Empirical Analysis of Household Vulnerability in Rural China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 11(2), pages 196-212.
    8. Yuan Zhang & Guanghua Wan, 2008. "Can We Predict Vulnerability to Poverty?," WIDER Working Paper Series RP2008-82, World Institute for Development Economic Research (UNU-WIDER).
    9. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1577-1625.
    10. Terry Sicular & Yue Ximing & Björn Gustafsson & Li Shi, 2007. "The Urban–Rural Income Gap And Inequality In China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 93-126, March.
    11. Md. Shafiul Azam & Katsushi Imai, 2009. "Vulnerability and Poverty in Bangladesh," Economics Discussion Paper Series 0905, Economics, The University of Manchester.
    12. Ethan Ligon & Laura Schechter, 2003. "Measuring Vulnerability," Economic Journal, Royal Economic Society, vol. 113(486), pages 95-102, March.
    13. Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno, 2000. "Quantifying vulnerability to poverty - a proposed measure, applied to Indonesia," Policy Research Working Paper Series 2437, The World Bank.
    14. Ravallion, Martin & Chen, Shaohua, 2007. "China's (uneven) progress against poverty," Journal of Development Economics, Elsevier, vol. 82(1), pages 1-42, January.
    15. Asep Suryahadi & Sudarno Sumarto, 2003. "Poverty and Vulnerability in Indonesia Before and After the Economic Crisis," Asian Economic Journal, East Asian Economic Association, vol. 17(1), pages 45-64, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shijiang Chen & Mingyue Liang & Wen Yang, 2022. "Does Digital Financial Inclusion Reduce China’s Rural Household Vulnerability to Poverty: An Empirical Analysis From the Perspective of Household Entrepreneurship," SAGE Open, , vol. 12(2), pages 21582440221, June.
    2. Peng, Yan-ling & Ren, Yanjun & Li, Hou-jian, 2021. "Do credit constraints affect households' economic vulnerability? Empirical evidence from rural China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(9), pages 2552-2568.
    3. Ward, Patrick S., 2016. "Transient Poverty, Poverty Dynamics, and Vulnerability to Poverty: An Empirical Analysis Using a Balanced Panel from Rural China," World Development, Elsevier, vol. 78(C), pages 541-553.
    4. Zeng, Qiyan & He, Zhipeng & Zeng, Yinchu, 2023. "Public procurement, consumers' preference and poverty alleviation through consumption," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    5. Md. Faruq Hasan & Katsushi S. Imai & Takahiro Sato, 2012. "Impacts of Agricultural Extension on Crop Productivity, Poverty and Vulnerability: Evidence from Uganda," Discussion Paper Series DP2012-34, Research Institute for Economics & Business Administration, Kobe University, revised Feb 2013.
    6. Ranjula Bali Swain, 2012. "Differential impact of microfinance delivery mechanism on vulnerability," Applied Economics Letters, Taylor & Francis Journals, vol. 19(8), pages 721-724, May.
    7. Tomoki Fujii, 2016. "Concepts and measurement of vulnerability to poverty and other issues: a review of literature," Chapters, in: Jacques Silber & Guanghua Wan (ed.), The Asian ‘Poverty Miracle’, chapter 3, pages 53-83, Edward Elgar Publishing.
    8. Xiaobing Wang & Jenifer Piesse & Nick Weaver, 2013. "Mind the gaps: a political economy of the multiple dimensions of China's rural–urban divide," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 52-67, November.
    9. Xiaobing Wang & Jenifer Piesse & Nick Weaver, 2011. "Mind the gaps: a political economy of the multiple dimensions of China’s rural–urban divide," Global Development Institute Working Paper Series 15211, GDI, The University of Manchester.
    10. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
    11. Katsushi S. Imai & Md. Faruq Hasan & Eleonora Porreca, 2015. "Do Agricultural Extension Programmes Reduce Poverty and Vulnerability? Farm Size, Agricultural Productivity and Poverty in Uganda," Discussion Paper Series DP2015-06, Research Institute for Economics & Business Administration, Kobe University.
    12. Bronfman, Javier & Floro, Maria, 2014. "How well has the Social Protection Scheme Reduced Vulnerability in Chile?," MPRA Paper 63255, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Masood Azeem & Amin W. Mugera & Steven Schilizzi & Kadambot H. M. Siddique, 2017. "An Assessment of Vulnerability to Poverty in Punjab, Pakistan: Subjective Choices of Poverty Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(1), pages 117-152, October.
    2. Novignon, Jacob, 2010. "Estimating household vulnerability to poverty from cross section data: an empirical evidence from Ghana," MPRA Paper 39900, University Library of Munich, Germany.
    3. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
    4. 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.
    5. Almås, Ingvild & Johnsen, Åshild Auglænd, 2012. "The cost of living in China: Implications for inequality and poverty," Discussion Paper Series in Economics 21/2012, Norwegian School of Economics, Department of Economics.
    6. Zereyesus, Yacob & Embaye, Weldensie & Tsiboe, Francis & Amanor-Boadu, Vincent, 2016. "Participation in non-farm work and vulnerability to food poverty of households in northern Ghana," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235741, Agricultural and Applied Economics Association.
    7. Ward, Patrick S., 2016. "Transient Poverty, Poverty Dynamics, and Vulnerability to Poverty: An Empirical Analysis Using a Balanced Panel from Rural China," World Development, Elsevier, vol. 78(C), pages 541-553.
    8. Begum, Syeda Shahanara & Deng, Quheng & Gustafsson, Björn, 2012. "Economic growth and child poverty reduction in Bangladesh and China," Journal of Asian Economics, Elsevier, vol. 23(1), pages 73-85.
    9. Martin Ravallion & Shaohua Chen, 2022. "Is that really a Kuznets curve? Turning points for income inequality in China," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 749-776, December.
    10. Chuliang Luo & Terry Sicular, 2011. "Inequality and Poverty in Rural China," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201114, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    11. Tomoki Fujii, 2016. "Concepts and measurement of vulnerability to poverty and other issues: a review of literature," Chapters, in: Jacques Silber & Guanghua Wan (ed.), The Asian ‘Poverty Miracle’, chapter 3, pages 53-83, Edward Elgar Publishing.
    12. Shi Li & Chuliang Luo & Terry Sicular, 2011. "Overview: Income Inequality and Poverty in China, 2002-2007," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201110, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    13. Xiaobing Wang & Jenifer Piesse & Nick Weaver, 2011. "Mind the gaps: a political economy of the multiple dimensions of China’s rural–urban divide," Global Development Institute Working Paper Series 15211, GDI, The University of Manchester.
    14. Lixin He & Hiroshi Sato, 2013. "Income Redistribution In Urban China By Social Security System—An Empirical Analysis Based On Annual And Lifetime Income," Contemporary Economic Policy, Western Economic Association International, vol. 31(2), pages 314-331, April.
    15. Gustafsson, Björn Anders & Sai, Ding, 2008. "Temporary and Persistent Poverty among Ethnic Minorities and the Majority in Rural China," IZA Discussion Papers 3791, Institute of Labor Economics (IZA).
    16. Zereyesus, Yacob A. & Embaye, Weldensie T. & Tsiboe, Francis & Amanor-Boadu, Vincent, 2017. "Implications of Non-Farm Work to Vulnerability to Food Poverty-Recent Evidence From Northern Ghana," World Development, Elsevier, vol. 91(C), pages 113-124.
    17. Hardeweg, Bernd & Wagener, Andreas & Waibel, Hermann, 2013. "A distributional approach to comparing vulnerability, applied to rural provinces in Thailand and Vietnam," Journal of Asian Economics, Elsevier, vol. 25(C), pages 53-65.
    18. Shijiang Chen & Mingyue Liang & Wen Yang, 2022. "Does Digital Financial Inclusion Reduce China’s Rural Household Vulnerability to Poverty: An Empirical Analysis From the Perspective of Household Entrepreneurship," SAGE Open, , vol. 12(2), pages 21582440221, June.
    19. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
    20. Satya R. Chakravarty & Nachiketa Chattopadhyay & Jacques Silber & Guanghua Wan, 2016. "Measuring the impact of vulnerability on the number of poor: a new methodology with empirical illustrations," Chapters, in: Jacques Silber & Guanghua Wan (ed.), The Asian ‘Poverty Miracle’, chapter 4, pages 84-117, Edward Elgar Publishing.

    More about this item

    Keywords

    poverty; vulnerability; taxation; rural China;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:2886. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Padma Prakash (email available below). General contact details of provider: http://www.esocialsciences.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.