Explaining the poverty difference between inland and coastal China

a regression-based decomposition approach

Guanghua Wan, Yin Zhang

    Research output: Contribution to journalArticle

    8 Citations (Scopus)

    Abstract

    This study proposes a decomposition framework for quantifying contributions of the determinants of poverty to spatial differences or temporal changes in poverty. This framework is then applied to address the issue why poverty incidence is higher in inland than in coastal China. The empirical application requires household or individual income observations which, generally speaking, are not available. Thus, a data-generation method developed by Shorrocks and Wan is introduced to construct such observations from grouped income data. It is found that inland China is poorer than coastal China, mainly due to lower efficiency in resource utilization rather than less endowment of resources. Also, trade became poverty-reducing in coastal China in the late 1990s but remained poverty-inducing in inland China. Policy implications are briefly discussed.
    Original languageEnglish
    Pages (from-to)455-467
    Number of pages13
    JournalReview of Development Economics
    Volume12
    Issue number2
    DOIs
    Publication statusPublished - 1 May 2008

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    poverty
    decomposition
    regression
    China
    income
    resources
    incidence
    utilization
    determinants
    efficiency
    resource

    Cite this

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    abstract = "This study proposes a decomposition framework for quantifying contributions of the determinants of poverty to spatial differences or temporal changes in poverty. This framework is then applied to address the issue why poverty incidence is higher in inland than in coastal China. The empirical application requires household or individual income observations which, generally speaking, are not available. Thus, a data-generation method developed by Shorrocks and Wan is introduced to construct such observations from grouped income data. It is found that inland China is poorer than coastal China, mainly due to lower efficiency in resource utilization rather than less endowment of resources. Also, trade became poverty-reducing in coastal China in the late 1990s but remained poverty-inducing in inland China. Policy implications are briefly discussed.",
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    Explaining the poverty difference between inland and coastal China : a regression-based decomposition approach. / Wan, Guanghua; Zhang, Yin.

    In: Review of Development Economics, Vol. 12, No. 2, 01.05.2008, p. 455-467.

    Research output: Contribution to journalArticle

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