Pro-poor Growth Theory And Measurement

In the process of the economy transformation with the continuous high-speed growth, the people's income level was significantly improved, but it leads to a gradual expansion of the gap between rich and poor, and the income of residents led to a widening gap between low-income relative poverty problems have become increasingly prominent. Pro-poor economic growth, what factors make growth more pro-poor, as well as from the increase in the income distribution is more pro-poor and other issues gradually emerged."Pro-poor growth" refers to specific groups of the poor to participate in economic activities, and to get more benefits from the economic growth. In this paper, the current widespread concern economic growth under the conditions of the income distribution and poverty mitigation in-depth analysis, was based on the a unified theory and framework of triangle factors, the use of this measure to improve analysis and decomposition of China since reforming and opening up high-speed economic growth whether it is conducive to the poor evaluation, and the corresponding anti-poverty policies with a view to finding promote China's long-term pro-poor growth path would be proprosed in the end of this paper.Pro-poor growth theory and measurement methods is a complex internal structure, many factors affective system, which involved in setting economic theory, research methodology design, data collection, such as various economic issues. This article can be summed up in the main structure and content as follows:â… . The analysis of theoretical basis and framework in pro-poor growthRecognition and Measurement of poverty were the logical starting point. The object of study in accordance with the relevant theoretical pro-poor growth, poverty, income inequality and economic growth of the interaction between theories was on the basis of summing up the connotation of pro-poor growth and its basic framework.As the economy continues to develop, whether poor or rich, their living standards are changing during periods. As a result, the poverty line of this paper is changing, which is different from the existing theoretical models in the fixed poverty line, the effects of changes in poverty factors should also include the effects of changes in the poverty line.The paper also summed up part of the middle class from the middle-income groups, because the rich groups in the interests of the compensation to offset the erosion of the interests of the poor, its share of the fruits of economic growth to maintain a certain level must be balanced. This conclusion can be as a pro-poor growth outlook for further study.â…¡. The pro-poor growth factors and decompositionThis is the core and the foundation of this paper. The main part is divided into three aspects:First, this paper proposes a new pro-poor growth determination method based on income distribution, the degree of inequality with income and that the incidence of poverty to the new judge the content and structure determination of the pro-poor growth indicators.Secondly, this paper proposed the Shapley decomposition rules on the structure of the poverty complete decomposition. Various factors of pro-poor growth on the impact of poverty will be decomposed into effect for economic growth, income distribution, poverty changes effect, based on the use of different density function of the income during the periods under the standardized income distribution factor function and its decomposition.Third, the region decomposition in pro-poor growth would be discussed. In this paper, the rules still passed Shapley decomposition to effects of economic growth, income distribution and the effect of changes in the poverty line.In analysis of the pro-poor growth and determine factors in the decomposition process, the paper on the existing pro-poor growth indicators measure the rational standards for an amendment to the rational standard model extended from the two factors to the three factors of completely dynamic decomposition model.By using actual data and the various poverty lines for a robust empirical analysis, the Chinese rural and urban economic development experienced a growth from the strong pro-rich, weak-pro-rich growth, to weak-pro-poor growth in early this century. Empirical research results also show that China's rapid economic growth, rural and urban poor groups to share results provide a solid economic base, as well as the significant reduction of poverty has made a significant contribution. Although growth in recent years on the welfare of the people's will have a positive impact, but the income distribution effects and the cost of living increase partially offset by the effect of economic growth to poverty reduction. And the distribution of a worsening trend, which should take effective measures to further decrease income inequality.â…¢. Anti-poverty policies effectsThis paper summarizes the framework of anti-poverty policy in the aspect of the pro-poor growth, and points that the key issue of pro-poor growth policies how to speed economic growth under the condition of raising the income level of poverty, reducing their welfare loss, and to fundamentally solve the income distribution gap problem.In summary, this paper draws on the research results at home and abroad, through pro-poor growth theory. Its major innovations are follows:First, this study on the creation and perfection with Chinese characteristics and with the international standards of the pro-poor growth theory is a useful exploration;Second, this paper defines the concept of pro-poor growth. And measures the environment and nature of economic growth from the level of quantitative research on poverty reduction for the first time;Third, this paper constructed a new indicator named poverty sensitivity, and it can be completely decomposed to three factors;Fourth, this paper presents the different regional economic growth results, and measured the pro-poor growth and decomposition for improving the regional pro-poor growth;Fifth, this study of the government policies provides a scientific basis for macro-regulationl, quantitative criteria and evaluation methods. What's the norms of economic growth, development of policies are conducive to economic growth for poverty alleviation; what's kind of redistribution policy can be used to formulate; what's kind of pro-poor policies and ways to alleviate poverty; how the "Trickle-down Help-the-poor Policy" and the "Aim-the-poor Policy" would be effective integrated in China. This study seeks to answer and solve these problems and attempt to provide quantitative suitable limits for operating over a period.