The Research Of Poverty In Chinese Growth Process

Before the reform and opening, China had a very serious problem of poverty, but not very prominent, nor is it a hot social issue. This is because under the planned economy system, the widespread poverty, poor people rely mainly on some of the various rescue units, the government has little direct implementation of the relief, so the problem of poverty in society is not prominent. With the economic system reforms, almost of the rescue units steering to the social and depend on the government bailout, problems stand out. Moreover, with the transformation of the economic system, Chinese economic development has made significant progress; universal access to greatly improved people's lives after the problem of poverty began to become a hot issue.Following the reforms and the opening up Chinese poor population, especially the rural poor decreased dramatically. During 1978-2009, according to the absolute poverty line, poverty populations in Chinese Rural reduce from 250 million to 35.97 million. According to the most points of the research of most investigators, the results of poverty reduction mainly due to economic growth. In recent years, economic growth is still accelerating, but the rate of poverty reduction decrease. Numerous expert studies have shown that in addition to economic growth, equality in distribution of income is another important factor affecting poor. The thrust of this paper is to explore the relationship between Chinese economic growth and distribution of income and poverty.In this paper, I use rural households'income of CHNS survey to calculate FGT poverty index, and to study the incidence of poverty, poverty gap and squared poverty gap and the empirical relationship of them between economic growth and distribution of income. The research finds that Chinese economic growth is the main driver of poverty reduction, but Income disparities has a negative effect on poverty reduction and hinder the speed of poverty reduction. And empirical research also shows that the absolute value of the economic growth elasticity of poverty is less than the absolute value of distribution of income elasticity of poverty. This means that without considering other factors, if the government does not take effective measures to narrow Income disparities, the distribution of income for poverty reduction will offset the negative effect of economic growth even more than the positive effect on poverty reduction.