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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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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
Date of revision:
Handle: RePEc:man:sespap:0913
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  1. Md. Shafiul Azam & Katsushi S. Imai, 2010. "Vulnerability and poverty in Bangladesh," Working Papers id:2675, eSocialSciences.
  2. Jalan, Jyotsna & Ravallion, Martin, 2002. "Household Income Dynamics in Rural China," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. 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, 03.
  4. Ligon, Ethan & Laura Schechter, 2002. "Measuring Vulnerability," Royal Economic Society Annual Conference 2002 128, Royal Economic Society.
  5. 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.
  6. Zhang, Yuan & Wan, Guanghua, 2008. "Can We Predict Vulnerability to Poverty?," Working Paper Series RP2008/82, World Institute for Development Economic Research (UNU-WIDER).
  7. Ravallion, Martin & Shaohua Chen, 2004. "China's (uneven) progress against poverty," Policy Research Working Paper Series 3408, The World Bank.
  8. 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.
  9. Knight, John & Song, Lina, 1999. "The Rural-Urban Divide: Economic Disparities and Interactions in China," OUP Catalogue, Oxford University Press, number 9780198293309.
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