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Do government transfers reduce poverty in China? Micro evidence from five regions

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  • Westmore, Ben
Abstract
This paper estimates urban and rural poverty rates across five Chinese province-level administrative regions (Shanghai, Liaoning, Guangdong, Henan and Gansu) using representative household survey data from the China Family Panel Studies survey. The types of government transfer payments that households in poverty received and the ability for such payments to lift them from poverty are also assessed. Consistent with published estimates from China's National Bureau of Statistics, the results highlight substantial disparities in poverty rates between provinces in 2014. Nevertheless, for each province, the poverty rates estimated from the survey data were notably higher than the official figures. Although the problem of rural poverty continues to be a significant focus of Chinese policymakers, the results suggest that the poverty rate was higher in urban than in rural areas in most provinces. This partly owed to the higher cost of living in urban China, which is captured in the poverty lines defined for this analysis. In 2014, the most common types of government transfer received by households in poverty were agricultural subsidies or social assistance - principally the dibao. Regarding the latter, the results suggest some improvement in payment targeting in rural areas between 2012 and 2014, but the majority of dibao recipients in most provinces still had income above the defined poverty line in 2014. Furthermore, across all provinces, the vast majority of households living below the defined poverty line did not receive social assistance at that time.

Suggested Citation

  • Westmore, Ben, 2018. "Do government transfers reduce poverty in China? Micro evidence from five regions," China Economic Review, Elsevier, vol. 51(C), pages 59-69.
    • Handle: RePEc:eee:chieco:v:51:y:2018:i:c:p:59-69
    DOI: 10.1016/j.chieco.2018.05.009
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    2. Ben Westmore, 2017. "Sharing the Benefits of China’s Growth by Providing Opportunities to All," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-33, October.
    3. Yingfeng Fang & Fen Zhang, 2021. "The Future Path To China’s Poverty Reduction—Dynamic Decomposition Analysis With The Evolution Of China’s Poverty Reduction Policies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 507-538, December.
    4. Yongmin Luo & Shenqi Ding & Qiyuan Li & Min Gao, 2024. "Adding insult to injury: Living in a remote location increases the burden of gift expenses among the rural poor in China," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(5), pages 2229-2251, July.
    5. Harman Preet Singh & Ajay Singh & Fakhre Alam & Vikas Agrawal, 2022. "Impact of Sustainable Development Goals on Economic Growth in Saudi Arabia: Role of Education and Training," Sustainability, MDPI, vol. 14(21), pages 1-25, October.
    6. Zixuan He & Xiangming Fang & Nathan Rose & Xiaodong Zheng & Scott Rozelle, 2021. "Rural minimum living standard guarantee (rural Dibao) program boosts children's education outcomes in rural China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 13(1), pages 54-77, January.
    7. Mao, Hui & Fu, Yong, 2024. "Risk preference and relative poverty: An analysis based on the data of China Family Panel Studies," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 220-232.
    8. Duan, Wenqi & Jiang, Mingming & Qi, Jianhong, 2024. "Agricultural certification, market access and rural economic growth: Evidence from poverty-stricken counties in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 99-114.
    9. Mandla Abednico Mubecua, 2018. "China’s Progress in Poverty Reduction: What Can South Africa Learn from China to Attain the Poverty Eradication Goal in the Sustainable Development Goals?," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 91-98.
    10. Zhonghao Zhang & Shimeng Sun & Wanzhen Chen & Xuesong He, 2023. "Spatiotemporal patterns in China's Minimal Living allowances: The urban‐rural gap and regional differences revealed through a national poverty alleviation program," Growth and Change, Wiley Blackwell, vol. 54(1), pages 214-233, March.
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    More about this item

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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