China's (Uneven) Progress Against Poverty

57 Pages Posted: 20 Apr 2016

See all articles by Martin Ravallion

Martin Ravallion

Georgetown University

Shaohua Chen

World Bank; World Bank - Development Research Group (DECRG)

Date Written: September 2004

Abstract

While the incidence of extreme poverty in China fell dramatically 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. The pattern of growth mattered. 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. Rising inequality within the rural sector greatly slowed poverty reduction. Provinces starting with relatively high inequality saw slower progress against poverty, due both to lower growth and a lower growth elasticity of poverty reduction. Taxation of farmers and inflation hurt the poor. External trade had little short-term impact.

This paper - a product of the Poverty Team, Development Research Group - is part of a larger effort in the group to understand the causes of country success in poverty reduction.

Keywords: China, poverty, inequality, economic growth, policies

JEL Classification: O15, O53, P36

Suggested Citation

Ravallion, Martin and Chen, Shaohua, China's (Uneven) Progress Against Poverty (September 2004). World Bank Policy Research Working Paper No. 3408. Available at SSRN: https://ssrn.com/abstract=625285

Martin Ravallion (Contact Author)

Georgetown University ( email )

Washington, DC 20057
United States

Shaohua Chen

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
1,315
Abstract Views
7,969
rank
14,457
PlumX Metrics