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The Rise of the Middle Class in the People's Republic of China

Author

Listed:
  • Yuan, Zhang

    (Fudan University)

  • Wan, Guanghua

    (Asian Development Bank)

  • Khor, Niny

    (Asian Development Bank)

Abstract

Using $2–$20 (purchasing power parity) per capita daily income as the definition of middle class, majority of households in the People's Republic of China (PRC) have become middle class by 2007, which is especially impressive given that around 40% of households were still considered poor in 1991. The rise of the middle class is evident for both urban and rural areas and across East, Central, and West PRC. The drivers of this trend include market development, industrialization, and privatization. As industrialization and urbanization continue in the PRC, the growth of the middle class will intensify, and could hold the key to altering the PRC's growth pattern from investment- and export-led to consumption-led.

Suggested Citation

  • Yuan, Zhang & Wan, Guanghua & Khor, Niny, 2011. "The Rise of the Middle Class in the People's Republic of China," ADB Economics Working Paper Series 247, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0247
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    consumption-led growth; industrialization; middle class; privatization; urbanization;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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