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The Impacts of Growth and Inequality on Rural Poverty in China

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  • Yin Zhang
  • Guanghua Wan

Abstract

This paper analyzes the evolution of poverty in China from the late 1980s to the late 1990s, employing a version of Shapley decomposition tailored to unit-record household survey data. The changes in poverty trends are attributed to two proximate causes— income growth and shifts in income distribution. Different datasets, poverty lines, poverty measures, and equivalence scales are used to examine the robustness of the results. Potential biases arising from ignoring differential regional prices and inflation are also investigated.

Suggested Citation

  • Yin Zhang & Guanghua Wan, 2006. "The Impacts of Growth and Inequality on Rural Poverty in China," WIDER Working Paper Series RP2006-94, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2006-94
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