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Chinese Poverty: Assessing The Impact Of Alternative Assumptions

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  • Camelia Minoiu
  • Sanjay G. Reddy
Abstract
This paper investigates how estimates of the extent and trend of consumption poverty in China between 1990 and 2004 vary as a result of alternative plausible assumptions concerning the poverty line and estimated levels of consumption. Our methodology focuses on the following sources of variation: purchasing power exchange rates (used to convert an international poverty line), alternative levels and distributions of private incomes, alternative estimates of the propensity to consume of different income groups, and alternative spatial and temporal price indices. We report national, urban and rural poverty estimates corresponding to distinct assumptions. It is widely believed that substantial poverty reduction took place in China in the 1990s, and we find this conclusion to be largely robust to the choice of assumptions, although estimates of the extent of Chinese poverty, and therefore of world poverty, in any year are greatly influenced by this choice.

Suggested Citation

  • Camelia Minoiu & Sanjay G. Reddy, 2008. "Chinese Poverty: Assessing The Impact Of Alternative Assumptions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 572-596, December.
    • Handle: RePEc:bla:revinw:v:54:y:2008:i:4:p:572-596
    DOI: 10.1111/j.1475-4991.2008.00288.x
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    Cited by:

    1. Chen, Zhuo & Eastwood, David B. & Yen, Steven T., 2007. "A decade's story of childhood malnutrition inequality in China: Where you live does matter," China Economic Review, Elsevier, vol. 18(2), pages 139-154.
    2. Yanfeng Chen & Qingjie Xia & Xiaolin Wang, 2021. "Consumption and Income Poverty in Rural China: 1995–2018," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 63-88, July.
    3. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2007. "Globalization, consumerism and child labour," MPRA Paper 4370, University Library of Munich, Germany.
    4. Jean-Pierre Lachaud, 2005. "A la recherche de l’insaisissable dynamique de pauvreté au Burkina Faso. Une nouvelle évidence empirique," Documents de travail 117, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    5. Shi Li & Chuliang Luo & Terry Sicular, 2011. "Overview: Income Inequality and Poverty in China, 2002-2007," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201110, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    6. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    7. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2011. "Poverty alleviation programs, FDI-led growth and child labour under agricultural dualism," MPRA Paper 29997, University Library of Munich, Germany.
    8. Lars Osberg & Jiaping Shao & Kuan Xu, 2009. "The growth of poor children in China 1991–2000: why food subsidies may matter," Health Economics, John Wiley & Sons, Ltd., vol. 18(S1), pages 89-108, April.
    9. Baafi Antwi, Joseph & Oppong Kwakye, Francis, 2010. "Globalization and its influence on Economic Growth performance," MPRA Paper 24608, University Library of Munich, Germany.
    10. Bjorn Gustafsson & Ximing Yue, 2012. "Rural people's perception of income adequacy in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 4(3), pages 264-280, August.
    11. Dwibedi, Jayanta Kumar & Chaudhuri, Sarbajit, 2014. "Agricultural subsidy policies fail to deal with child labour under agricultural dualism: What could be the alternative policies?," Research in Economics, Elsevier, vol. 68(3), pages 277-291.
    12. Dwibedi, Jayanta Kumar & Chaudhuri, Sarbajit, 2010. "Foreign capital, return to education and child labour," International Review of Economics & Finance, Elsevier, vol. 19(2), pages 278-286, April.
    13. Jean-Louis Warnholz (QEH), "undated". "Poverty Reduction for Profit? A Critical Examination of Business Opportunities at the Bottom of the Pyramid," QEH Working Papers qehwps160, Queen Elizabeth House, University of Oxford.
    14. Fei Yan, 2018. "Urban poverty, economic restructuring and poverty reduction policy in urban China: Evidence from Shanghai, 1978–2008," Development Policy Review, Overseas Development Institute, vol. 36(4), pages 465-481, July.
    15. George Obeng & Ebenezer Kumi, 2014. "Quantitative Impacts of Solar PV on Television Viewing and Radio Listening in Off-grid Rural Ghana," Energy and Environment Research, Canadian Center of Science and Education, vol. 4(1), pages 1-62, June.
    16. Charlotte Guénard & Sandrine Mesplé‐Somps, 2010. "Measuring Inequalities: Do Household Surveys Paint A Realistic Picture?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(3), pages 519-538, September.

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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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