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Poverty Reduction In China And India: A Comparative Study

Author

Listed:
  • TONGJIN ZHANG

    (School of Economics, Tianjin University of Commerce, Tianjin, P. R. China)

  • YUAN ZHANG

    (China Center for Economic Studies, Fudan University, Shanghai, P. R. China)

  • GUANGHUA WAN

    (Institute of World Economy, Fudan University, Shanghai, P. R. China)

  • HAITAO WU

    (School of Business Management, Zhongnan University of Economics and Law, Hubei, P. R. China)

Abstract

This paper attempts to explain why China performed better than India in reducing poverty. As two of the most populous countries in the world, China and India have both experienced fast economic growth and high inequality in the past four decades. Conversely, China adopted a more export-oriented development strategy, resulting in faster industrialization or urbanization and deeper globalization, than India. Consequently, to conduct the comparative study, we first decompose poverty changes into a growth and an inequality components, assessing the relative importance of growth versus distributional changes on poverty in China and India. Then, Chinese data are used to estimate the impacts of industrialization, urbanization and globalization on poverty reduction in rural China. The major conclusion of this comparative study is that developing countries must prioritize employment generation in secondary and tertiary industries through industrialization and globalization in order to absorb surplus agricultural labor, helping reduce poverty in the rural areas.

Suggested Citation

  • Tongjin Zhang & Yuan Zhang & Guanghua Wan & Haitao Wu, 2020. "Poverty Reduction In China And India: A Comparative Study," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(supp01), pages 95-115, December.
    • Handle: RePEc:wsi:serxxx:v:65:y:2020:i:supp01:n:s0217590820440026
    DOI: 10.1142/S0217590820440026
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    Citations

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    Cited by:

    1. Kohnert, Dirk, 2021. "African migrants plight in India: Afrophobia impedes India's race for Africa's resources and markets," MPRA Paper 111123, University Library of Munich, Germany.
    2. Kohnert, Dirk, 2022. "African migrants plight in China: Afrophobia impedes China's race for Africa's resources and markets," MPRA Paper 111346, University Library of Munich, Germany.
    3. Gatto, Andrea & Drago, Carlo & Panarello, Demetrio & Aldieri, Luigi, 2023. "Energy transition in China: Assessing progress in sustainable development and resilience directions," International Economics, Elsevier, vol. 176(C).
    4. Tang, Kai & Li, Zhenshan & He, Chun, 2023. "Spatial distribution pattern and influencing factors of relative poverty in rural China," Innovation and Green Development, Elsevier, vol. 2(1).
    5. Kohnert, Dirk, 2022. "Le sort des migrants africains en Chine : L'afrophobie entrave la course de la Chine pour les ressources et les marchés de l'Afrique [African migrants plight in China: Afrophobia impedes China's ra," MPRA Paper 111355, University Library of Munich, Germany.
    6. Kohnert, Dirk, 2021. "Le sort des migrants africains en Inde : L'Afrophobie entrave la course de l'Inde aux ressources et aux marchés de l'Afrique [African migrants plight in India: Afrophobia impedes India"s race ," MPRA Paper 111124, University Library of Munich, Germany.

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