China's (uneven) progress against poverty Ravallion, Martin; Chen, Shaohua

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Ravallion, Martin ; Chen, Shaohua
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The Journal of Development Economics
Poverty - China - Econometric models.; China - Rural conditions - Econometric models.; Poverty
To link to full-text access for this article, visit this link: Byline: Martin Ravallion, Shaohua Chen Keywords: China; Poverty; Inequality; Economic growth; Policies Abstract: While the incidence of extreme poverty fell dramatically in China over 1980-2001, progress was uneven over time and across provinces. Rural areas accounted for the bulk of the gains to the poor, though migration to urban areas helped. Rural economic growth was far more important to national poverty reduction than urban economic growth; agriculture played a far more important role than the secondary or tertiary sources of GDP. Taxation of farmers and inflation hurt the poor; local government spending helped them in absolute terms; external trade had little short-term impact. Provinces starting with relatively high inequality saw slower progress against poverty, due both to lower growth and a lower growth elasticity of poverty reduction. Author Affiliation: Development Research Group, World Bank, 1818 H Street NW, Washington DC, 20433, USA Article History: Received 5 August 2004; Revised 28 June 2005; Accepted 30 July 2005 Article Note: (footnote) [star] These are the views of the authors and should not be attributed to the World Bank or any affiliated organization.
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