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The cost of a growth miracle - reassessing price and poverty trends in China
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
Number of Authors: 22018 (English)In: Review of economic dynamics (Print), ISSN 1094-2025, E-ISSN 1096-6099, Vol. 30, p. 239-264Article in journal (Refereed) Published
Abstract [en]

China's economic development in recent decades has been tremendous, but also subject to debate. This paper uses Engel curves to identify price levels and real incomes that are comparable across both time and space. Based on these, new poverty trends are presented. We find that the urban and coastal areas that have experienced the fastest economic development have also seen smaller price increases than the poorer rural and inland areas. Our measures reveal that China has experienced substantial poverty reduction in a time with high economic growth, but compared to both the World Bank measures and those based on official CPI adjustments, our measures suggest a more moderate poverty reduction. Our findings imply that poverty was reduced by 40 and not 66 percent using the $1 dollar a day measure.

Place, publisher, year, edition, pages
2018. Vol. 30, p. 239-264
Keywords [en]
Engel curves, China, Poverty, Cost of living
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-162929DOI: 10.1016/j.red.2018.05.006ISI: 000449901700013OAI: oai:DiVA.org:su-162929DiVA, id: diva2:1272082
Available from: 2018-12-18 Created: 2018-12-18 Last updated: 2018-12-18Bibliographically approved

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