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Poverty and Vulnerability in Rural China: Effects of Taxation

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  • Katsushi S. Imai
  • Xiaobing Wang
  • Woojin Kang

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]
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Suggested Citation

  • Katsushi S. Imai & Xiaobing Wang & Woojin Kang, 2009. "Poverty and Vulnerability in Rural China: Effects of Taxation," Economics Discussion Paper Series 0913, Economics, The University of Manchester.
  • Handle: RePEc:man:sespap:0913
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    References listed on IDEAS

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    Cited by:

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    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. 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.
    5. 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.
    6. Zhang, Yurong & Zhao, Xueya & Wu, Jiaxuan & Zeng, Ting, 2024. "Human capital of grassroots leaders and vulnerability to poverty: Evidence from rural China," Journal of Asian Economics, Elsevier, vol. 93(C).
    7. 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.
    8. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
    9. Bronfman, Javier & Floro, Maria, 2014. "How well has the Social Protection Scheme Reduced Vulnerability in Chile?," MPRA Paper 63255, University Library of Munich, Germany.
    10. Zeng, Qiyan & He, Zhipeng & Zeng, Yinchu, 2023. "Public procurement, consumers' preference and poverty alleviation through consumption," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    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. 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.
    13. 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.

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