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Measurement and Dimensional Decomposition of Multidimensional Poverty in China Rural Areas

Author: QiNingLin
Tutor: HongXingJian
School: Zhejiang Technology and Business University
Course: National Economics
Keywords: Multidimensional Poverty Index Measurement DimensionalDecomposition Income Poverty Index Correlation Analysis Dynamic Evolution
CLC: F323.8
Type: Master's thesis
Year: 2013
Downloads: 1
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Abstract


Poverty is a worldwide problem; our scholar is trying to study the problem of poverty, trying to discover the nature and causes of poverty, so as to give some useful suggestions for poverty reduction. However, the existing studies most focus on using income to measure poverty, neglected some other aspects of poverty, such as health, education and so on. This paper introduces the concept of multidimensional poverty and studies China rural multidimensional poverty by Multidimensional Poverty Index (MPI) based on five years survey data of CHNS. The MPI has six dimensions include fifteen indicators that are quality of life, assets, income, education, health and nutrition. The empirical results show that from a single incidence of poverty indicators, we can see that except disease and body mass index have an upward trend, the other13basic indicators show a downward trend or unchanged. From the numerical look, poverty incidence of health facility, energy intake, cooking fuel, disease and other aspects are still relatively large. From a multidimensional sight, the incidence and Mo are decreasing, but M1and M2are increasing. In order to reduce multidimensional poverty efficiently, reducing nutrition poverty and health poverty will help to decrease Mo, and reducing income poverty and education poverty will help to decrease M1and M2. In solving the problem of rural poverty, we should attach importance to multidimensional poverty gap and multidimensional inequality between poor families. Only to solve these two problems, can we eliminate rural poverty. In addition, the seven provincial Mo comparisons tell us that the distribution of multidimensional poverty and income poverty is basically the same, which mainly concentrated in Midwest and Northeast regions. Further research the income poverty index and multidimensional poverty index we can see that individual multidimensional poverty is serious than income poverty, but the two series of indexes has a certain correlation, in particular, the incidence of income poverty and multidimensional poverty incidence and income gap ratio and Multidimensional poverty Index M1has a strong correlation, which reflects the income and mutual influence of functional activity relationships. Multidimensional Poverty can provide richer information. In order to better reflect the diversity of rural poverty, we should broaden the scope of poverty identification, combine with multidimensional poverty measurement methods and adjust some indicators based on regional characteristics to improve the targeted regional poverty reduction and increase poverty welfare effects.Changes in multidimensional poverty in rural China are more complex, so only use static indicator is difficult to reflect the evolution of Chinese multidimensional poverty. From the perspective of liquidity, we calculate the impact of relieving from poverty, returning into poverty and long term poverty to discover the influences of families’dynamic changes and find that:relieving from poverty and returning into poverty present a basic downward trend; durable poverty undulate sometimes, but has an upward trend. Though poverty headcount ratio of long term is decreasing, the extent of poverty is deepened. Relieving from poverty is the main cause of poverty decrease, and returning into poverty is the main reason of poverty increase. So we must actively do some work to help the poor households out of poverty and through all the efforts to prevent the non-poor families to return the poor, but also increase the support efforts to durable poor families.

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CLC: > Economic > Agricultural economy > China 's agricultural economy > Construction and development of agricultural economy > Agricultural income and distribution
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