Economic Growth, Income Distribution And Poverty In Rural China

Since China introduced reform and opening policies, its sustained economic growth raises the people's income level while decreases the number of poor people in rural areas constantly, and Chinese anti-poverty has made tremendous achievements. However, along with Chinese sustained economic growth, the distribution of rural residents' income is increasingly unequal, which slows the affection that economic growth made to reduce poverty. Therefore, this paper which takes the change perspective of the relationship between the economic growth and income distribution to discuss Chinese rural poverty has a very important significance.Starting from the relationship between economic growth, income distribution and Chinese rural poverty, the author firstly does some researches on the relationship between the growth of Chinese rural economy and rural poverty with the economic growth which is the primary power to reduce rural poverty, the number of poor people in rural areas declines continuously. Unequal distribution of income in Chinese rural areas has slowed down the pace of poverty reduction, made the poverty situation worse and reduced the affection that economic growth made to reduce poverty. After that, this paper sets up a simple linear regression model according to the data taken on Chinese rural poverty by World Bank. This model confirms the front relevant theoretical hypothesis, the negative relations between Chinese rural economic growth and poverty in Chinese rural areas, and the positive relationship between Chinese income inequality and rural poverty. Thirdly, this paper analyzes the Chinese current economic growth in rural areas. To a certain extent, the lower speed of economic growth in Chinese rural areas slowdowns the speed of reduce poverty. At the same time, the situation of unequal distribution of income becomes worse. Therefore Chinese rural poverty is facing a situation even more severe.This paper insists that in order to reduce rural poverty, attention should not only be paid on the economic growth, greater efforts should also be put to promote equality of rural income distribution, and the author put forward his proposals in this paper.