Abstract:
Using the Shapley decomposition form, Kakwani&Pernia index and the data from four sample surveys on rural households in Gansu Province, this study analyzes the contribution of income growth and income distribution to poverty reduction in the past decade for these sample households. Results demonstrate that income growth significantly lowers the occurrence rate and relieves poverty in rural area. But for those in severe poverty, the effects of income growth on poverty reduction are limited. Uneven distribution of wealth weakens the positive effects of income growth on poverty reduction. Most of the time, the economic growth does not benefit the poor. To effectively eradicate poverty, multiple targeted poverty alleviation measures are needed apart from regional development and economic growth in an effort to narrow the income gap and lead severe poverty population out of poverty.
ZHANG Yong-li, SONG Jian.Income Growth, Income Distribution and Rural Poverty——An Empirical Analysis Based on Micro-Survey Data in Gansu Province[J] Economic Survey, 2017,V34(6): 26-31