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Dissecting the provincial relative poverty dynamics in China: a new four-dimensional decomposition approach

Weihong Sun, Manding Wang, Ding Liu

China Agricultural Economic Review

ISSN: 1756-137X

Article publication date: 26 November 2024

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Abstract

Purpose

This study investigates relative poverty in China against its rapid economic growth and poverty reduction efforts, aiming to understand the impact of evolving poverty lines and rural-urban disparities.

Design/methodology/approach

Utilizing micro-survey data and a novel four-dimensional decomposition method, the research decomposes provincial relative poverty changes in China into poverty line and income distribution effects. The poverty line effect is further broken down into the extensive and intensive components, and the impact of income distribution into the growth and inequality effects, offering a detailed examination of their roles in urban and rural contexts.

Findings

The findings indicate that economic growth significantly mitigates the incidence, depth and severity of relative poverty across both settings, whereas income inequality exacerbates these aspects. Additionally, changes in the poverty line through the extensive and intensive effects markedly elevate relative poverty levels. Despite overall reductions, rural areas continue to face higher poverty rates than urban regions, emphasizing the necessity for targeted poverty alleviation policies.

Originality/value

This paper provides a novel perspective by dissecting China’s relative poverty dynamics through a four-dimensional analysis, highlighting the importance of considering economic growth, income inequality and the poverty line adjustments. It underlines the need for policies that specifically address the nuances of relative poverty, including the persistent rural-urban divide, contributing valuable insights for more effective poverty alleviation strategies.

Keywords

Acknowledgements

Ding Liu would like to thank the financial support from the Humanity and Social Science Foundation of China’s Ministry of Education for Young Researcher (Grant No. 22YJC790074), Project No. 2022CDJSKJC12 and Project No. 2023CDSKXYJG007 supported by the Fundamental Research Funds for the Central Universities. Weihong Sun would like to thank the financial support from the National Social Science Fund of China Western project (Grant No. 21XSH005), Sichuan Provincial Philosophy and Social Science Fund Youth Project (Grant No. SCJJ23ND458) and the Fundamental Research Funds for the Central Universities (JBK2406118).

Funding: This work was supported by the Humanity and Social Science Foundation of China’s Ministry of Education for Young Researcher (Grant number 22YJC790074); the Fundamental Research Funds for the Central Universities (Grant numbers 2022CDJSKJC12, 2023CDSKXYJG007 and JBK2406118); the National Social Science Fund of China Western project (Grant number 21XSH005) and the Sichuan Provincial Philosophy and Social Science Fund Youth Project (Grant number SCJJ23ND458).

Citation

Sun, W., Wang, M. and Liu, D. (2024), "Dissecting the provincial relative poverty dynamics in China: a new four-dimensional decomposition approach", China Agricultural Economic Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CAER-02-2024-0054

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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