Chinese Poverty: Assessing the Impact of Alternative Assumptions
This Working Paper investigates how estimates of the extent and trend of consumption poverty in China between 1990 and 2001 vary as a result of alternative plausible assumptions concerning the poverty line and estimated levels of consumption. The exercise is motivated by the existence of considerable uncertainty about the appropriate poverty lines to apply and the level and distribution of resources in China. Our methodology focuses on the following sources of variation: alternative purchasing power parity conversion factors (used to convert an international poverty line), alternative estimates of the level and distribution of private incomes, alternative estimates of the propensity to consume of lower income groups, and alternative consumer price indices. It is widely believed that substantial poverty reduction took place in China in the 1990s, and we find this conclusion to be robust to the choice of assumptions. Moreover, there is no evidence that the rate of poverty reduction declined over time. China?s record of reducing consumption poverty has been dramatic. However, estimates of the extent of Chinese poverty in any year are greatly influenced by the assumptions made. The choice among these estimates is likely to have large implications for the perceived extent and trend of world poverty.
|Date of creation:||Jul 2006|
|Date of revision:|
|Publication status:||Published by UNDP - International Poverty Centre, July 2006, pages 1-35|
|Contact details of provider:|| Web page: http://www.ipc-undp.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 351-397.
- Yao, Shujie, 2000. "Economic Development and Poverty Reduction in China over 20 Years of Reforms," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 447-74, April.
- Ravallion, Martin & Shaohua Chen, 2001.
"Measuring pro-poor growth,"
Policy Research Working Paper Series
2666, The World Bank.
- Ruoen, Ren & Chen Kai, 1995. "China's GDP in U.S. dollars based on purchasing power parity," Policy Research Working Paper Series 1415, The World Bank.
- Shaohua Chen & Martin Ravallion, 2004.
"How Have the World's Poorest Fared since the Early 1980s?,"
World Bank Research Observer,
World Bank Group, vol. 19(2), pages 141-169.
- Chen, Shaohua & Ravallion, Martin, 2004. "How Have the World's Poorest Fared Since the Early 1980s?," Policy Research Working Paper Series 3341, The World Bank.
- John Gibson & Jikun Huang & Scott Rozelle, 2002.
"Improving Estimates of Inequality and Poverty From Urban China’s Household Income and Expenditure Survey,"
Working Papers in Economics
02/01, University of Waikato, Department of Economics.
- John Gibson & Jikun Huang & Scott Rozelle, 2003. "Improving Estimates of Inequality and Poverty from Urban China's Household Income and Expenditure Survey," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(1), pages 53-68, 03.
- Gibson, John & Huang, Jikun & Rozelle, Scott, 2001. "Improving Estimates Of Inequality And Poverty From Urban China'S Household Income And Expenditure Survey," Working Papers 11989, University of California, Davis, Department of Agricultural and Resource Economics.
- Jinjun Xue & Wei Zhong, 2003. "Unemployment, Poverty and Income Disparity in Urban China," Asian Economic Journal, East Asian Economic Association, vol. 17(4), pages 383-405, December.
- Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, number 9780195136494, June.
- Datt, Gaurav, 1998. "Computational tools for poverty measurement and analysis," FCND discussion papers 50, International Food Policy Research Institute (IFPRI).
- Xavier Sala-i-Martin, 2002.
"The World Distribution of Income (estimated from Individual Country Distributions),"
NBER Working Papers
8933, National Bureau of Economic Research, Inc.
- Xavier Sala-i-Martin, 2002. "The world distribution of income (estimated from individual country distributions)," Economics Working Papers 615, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2002.
- Sanjay G. Reddy & Camelia Minoiu, 2007. "Has World Poverty Really Fallen?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(3), pages 484-502, 09.
- Park, Albert & Wang, Sangui, 2001. "China's poverty statistics," China Economic Review, Elsevier, vol. 12(4), pages 384-398.
- Fang, Cheng & Zhang, Xiaobo & Fan, Shenggen, 2002. "Emergence of urban poverty and inequality in China: evidence from household survey," China Economic Review, Elsevier, vol. 13(4), pages 430-443, December.
When requesting a correction, please mention this item's handle: RePEc:ipc:wpaper:25. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andre Lyra)
If references are entirely missing, you can add them using this form.