An Analysis On Differences In Poverty Between Inland Areas And Coastal Rural Areas In China

Poor distribution exhibit regional differences generally. This difference exists not only between countries, but also between different regions of the same country and even between different parts of the same region. For example, in China, the breadth, depth and intensity of poverty not only between the interior and coastal areas but also between rural and urban exist a big difference. If regional differences of poverty long-stand, it will threaten social stability, political stability and economic development. Therefore, to compare the factors affecting different regions of poverty, to identify the causes of poverty generated by regional differences is extremely important for formulating anti-poverty policies and the rational allocation of resources to poverty reduction.This paper studies the relationship between interior and coastal of rural poverty and education, capital, dependency ratio, urbanization and other determinants of income and the Gini coefficient. Based on these regression results, emphasis on contribution between the various determinants of poverty in rural areas of inland and coastal. Details are as follows:The first chapter is an introduction. First introduced theory, practical value, major problem, main content and research methods of this paper. Secondly, arrange existing research of domestic and foreign, in purpose of providing a good foundation for the research work of this article. For Literature review, first summarize the relationship between the poverty changes and current economic growth and income distribution in most literature which always based on Datt-Ravallion decomposition. Then contrasting an improved poor decomposition which can study the determinants of economic growth on poverty changes. It provides preliminary research foundation on regional differences in the causes of rural poverty. Finally, the introduction portion provide innovation and disadvantage of the paper.The second chapter first compare commonly used metrics on poverty measurement analysis, including W index, S index, T index, Ta index, SST index and F index and choose poverty measure index of this paper. Then introduces concepts of several commonly used poverty analysis, including Lorenz curve, the Gini coefficient, and then establish a relationship between them, in order to establish analysis model.The third chapter is to introduce the decomposition of poverty, used to quantify absolute and relative contribution of various factors on poverty differences.The fourth chapter is the empirical analysis on inland and coastal of rural poverty differences. Poverty measures herein are represented by poverty incidence, poverty depth index and poverty intensity index. After calculating the estimated value of three poverty measures Index, then calculate the Gini coefficient, we could estimate regression equation of poverty. Based on the results of the regression equation of poverty, then decompose the differences between inland and coastal rural poverty by poor decomposition method and analysis the contribution of each factor on the poor inland and coastal rural difference.The fifth chapter will summarize the main findings and policy recommendations are given to reduce poverty.Results of this study are as following. Firstly, compared to the coastal region, resource inefficiency not resources shortage causing higher poverty in inland china. So, just by increasing the amount of resources into the inland to narrow the gap between coastal areas is not enough. Dependency ratio and the degree of inequality of income distribution are two other important factors cause higher poverty in inland china. Education and technical advances have helped reduce poverty in rural inland and coastal differences in the breadth, depth and extent. Technical progress play a more important role in reducing the differences between inland and coastal rural areas. The impact of urbanization and agriculture on inland and coastal rural poverty difference is not significant.The innovation of this article are as following. Current literature main research the impact of economic growth, income gap on the changes of poverty. Wan and Zhang(2008) break the limitations about factors of poverty changing and propose a decomposition framework between poverty and its determinants. Then use the method presented by Shorrocks and Wan(2008),measuring economic relations between interior and coastal of rural poverty and education, capital, dependency ratio, urbanization and other determinants of income and the Gini coefficient. But literature has the following two points can add. Firstly, poverty measures in documents only use strength index of poverty, missing two other commonly used measure index of poverty; Secondly, literature only research differences in poverty between inland areas and coastal urban areas in China, missing an analysis on differences in poverty between inland areas and coastal rural areas in China. Based on the decomposition framework proposed by Wan and Zhang(2008),using packet data of income and poverty incidence, poverty depth index and poverty intensity index, this paper analysis causing on differences in poverty between inland areas and coastal rural areas in China to supplement the existing literature.