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The Pro-Poor Growth Theory and Measurement in China

Author: LuZuoZuo
Tutor: ZhangKeZhong
School: Huazhong University of Science and Technology
Course: Business management
Keywords: pro-poor growth income inequality poverty reduction
CLC: F124
Type: Master's thesis
Year: 2010
Downloads: 42
Quote: 0
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Abstract


China has a rapid economic growth from 1978 because of economic system reform. But in recent year, the speed of anti-poverty is slow down. From 1998 to 2008, the rate of poverty reduction is 4.82 percent significantly lower than the first decade of China’s reform and opening up, when the rate of poverty reduction is 61.6 percent. The main reason is the income distribution is worse during the process of China’s economic reform, and the poor difficult to improve their living condition. In 2009, the GINI index in China is 0.47 which illustrates the income gap is widening. This is also an obstacle in our process of pro-poor growth. Whether the economic growth is pro-poor depends on the complex effect of growth and income distribution. In recent year, the Chinese government invested a lot, but didn’t gain significant effects. So we will promptly formulate policies and measures to adjust the distribution of national income and make the economic growth benefit more and more poor people, resolutely reverse the widening income gap. This demonstrates the pro-poor growth is important for us.The aim of my study is to build a model to measure whether the mode of Chinese economic benefit the poor. The study also provides relatively some guidance as to the polices and institutions that improving people’s wellbeing and promoting social harmony and progress.In the first place, the paper defines the meaning of pro-poor growth. Secondly, use the date of 2007 and 2008 to regress the Lorenz curve, using the Poverty Sensitivity to judge whether the growth of urban and rural of China is pro-poor. Then, use panel date to regress the elements which may affect the pro-poor growth. Finally, give some advices for the development of pro-poor growth and the methods of anti-poverty by empirical study.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development
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