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Poverty and Vulnerability in Rural China: Effects of Taxation

  • Katsushi S. Imai
  • Xiaobing Wang
  • Woojin Kang

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]

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File URL: http://www.socialsciences.manchester.ac.uk/medialibrary/economics/discussionpapers/EDP-0913.pdf
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Paper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 0913.

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Date of creation: 2009
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Handle: RePEc:man:sespap:0913
Contact details of provider: Postal: Manchester M13 9PL
Phone: (0)161 275 4868
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Web page: http://www.socialsciences.manchester.ac.uk/subjects/economics/

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  1. Sicular, Terry & Yue, Ximing & Gustafsson, Bjorn & Li, Shi, 2006. "The Urban-Rural Income Gap and Inequality in China," Working Paper Series RP2006/135, World Institute for Development Economic Research (UNU-WIDER).
  2. Md. Shafiul Azam & Katsushi S. Imai, 2009. "Vulnerability and Poverty in Bangladesh," ASARC Working Papers 2009-02, The Australian National University, Australia South Asia Research Centre.
  3. Knight, John & Song, Lina, 1999. "The Rural-Urban Divide: Economic Disparities and Interactions in China," OUP Catalogue, Oxford University Press, number 9780198293309, March.
  4. Zhang, Yuan & Wan, Guanghua, 2008. "Can We Predict Vulnerability to Poverty?," Working Paper Series RP2008/82, World Institute for Development Economic Research (UNU-WIDER).
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