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The impact of China's economic growth on poverty alleviation: From absolute to relative poverty

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  • Yixun Kang
  • Ying Li

Abstract

This paper investigates the extent to which China's economic growth and development influence poverty levels, focusing on the dichotomy between absolute and relative poverty. Leveraging data from sources like the World Bank, Statista, and Macrotrends, and employing economic frameworks such as the Lewis Model, Poverty Headcount Ratio, and Gini Coefficient, the study examines China's transformation from combating absolute poverty to addressing relative poverty. The findings highlight that robust economic growth from 2011 to 2022, driven by urban development and rural infrastructure investments, successfully eradicated absolute poverty and elevated rural incomes. However, this progress also exacerbated income inequality, as evidenced by a rising Gini Coefficient, complicating efforts to alleviate relative poverty. Through multidimensional analyses encompassing regional disparities, migration patterns, educational access, and societal factors, the paper underscores the dual impact of economic development on poverty alleviation. It concludes by advocating for policies that balance economic growth with equitable resource distribution to tackle persistent relative poverty and foster sustainable development.

Suggested Citation

  • Yixun Kang & Ying Li, 2024. "The impact of China's economic growth on poverty alleviation: From absolute to relative poverty," Papers 2412.20176, arXiv.org.
    • Handle: RePEc:arx:papers:2412.20176
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    1. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    2. Qi Zhang & Xinxin Zhang & Qi Cui & Weining Cao & Ling He & Yexin Zhou & Xiaofan Li & Yunpeng Fan, 2022. "The Unequal Effect of the COVID-19 Pandemic on the Labour Market and Income Inequality in China: A Multisectoral CGE Model Analysis Coupled with a Micro-Simulation Approach," IJERPH, MDPI, vol. 19(3), pages 1-21, January.
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