A Study Of The Impact Of The Inflation On Rural Vulnerability Of Poverty In China

Vulnerability of poverty, as a forward-looking concept of describing the possibilityof the individual or family into poverty, has become a hot topic in the current research ofpoverty. Numerous studies show that poor people face greater risk than the ordinarypeople, and they have weaker ability to resist the risk, so they are more vulnerable to theinfluence of risk and put up more fragile in front of risk. Meanwhile, poverty is a dynamicprocess. The individual or family that not in a poor state currently may suffer someimpact and fall into poverty in the future. And there are some groups in poverty now, butthey will be lifted out of poverty soon, of course, be likely to fall into deeper poverty.Therefore, researching poverty from the angle of vulnerability, not only offers a newperspective for our analysis of courses of poverty, but also new ideas for anti-poverty.Since early2007, China has experienced a new round of inflation. Related studies haveshown that, low-income people and poor families subject to affect of price changes,persistently increasing of price raise the living cost of the residents, and seriously affectthe enhancement of people’s living standards. That not only make the existing poorbecome poorer, but also make those non poor whose income is located near the povertyline back into poverty. Inflation as one of the important external risk, should be subject toattention of the anti-poverty researchers. View of this, this paper discusses the problem——What is the impact of inflation on vulnerability of poverty.First, we build a base of research in theory. Through the systematic analysis andcombing of relevant literature data, we build the system of measuring vulnerability.Secondly, we match and process CHNS data, considering a specific percentile CPI. Thenwe calculate the vulnerability before and after eliminating the price factor, and we analyseand evaluate the results of measuring vulnerability. Finally, we measure vulnerability ofsubgroup from angles of gender, age, and education level, to identify the vulnerablegroups affected more by inflation, and put forward appropriate policy recommendations.Through empirical analysis, we draw the main conclusions as follows:①the poorare more vulnerable, but poverty is unequal to fragile. Under the impact of inflation, thevulnerable groups are worth to pay more concern than the poor groups.②Genderdifferences exist in rural vulnerability issues. Rural women are more vulnerable inrisk,and easy to fall into poverty or persistent poverty.③With age increasing, vulnerability and the impact of inflation gradually increase.④High level of educationcause lower vulnerability and smaller impact of inflation.