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The pattern of growth and poverty reduction in China (English)

China has seen a huge reduction in the incidence of extreme poverty since the economic reforms that started in the late 1970s. Yet, the growth process has been highly uneven across sectors and regions. The paper tests whether the pattern of China´s growth mattered to poverty reduction using a new provincial panel data set constructed for this purpose. The econometric tests support the view that the primary sector (mainly agriculture) has been the main driving force in poverty reduction over the period since 1980. It was the sectoral unevenness in the growth process, rather than its geographic unevenness, that handicapped poverty reduction. Yes, China has had great success in reducing poverty through economic growth, but this happened despite the unevenness in its sectoral pattern of growth. The idea of a trade-off between these sectors in terms of overall progress against poverty in China turns out to be a moot point, given how little evidence there is of any poverty impact of non-primary sector growth, controlling for primary-sector growth. While the non-primary sectors were key drivers of aggregate growth, it was the primary sector that did the heavy lifting against poverty.

Details

  • Author

    Montalvo, Jose G. Ravallion, Martin

  • Document Date

    2009/10/01

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS5069

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    China,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2010/07/01

  • Disclosure Status

    Disclosed

  • Doc Name

    The pattern of growth and poverty reduction in China

  • Keywords

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Citation

Montalvo, Jose G. Ravallion, Martin

The pattern of growth and poverty reduction in China (English). Policy Research working paper ; no. WPS 5069 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/630501468219884900/The-pattern-of-growth-and-poverty-reduction-in-China