Research On Pro-Poor Growth Of Chinese Rural Area And Optimum Structure Of Fiscal Expenditure

Since the 1980s,our country has experienced astonishing economic growth.The population of the poor has been shrinking while the income gap between the rich and poor has been wider and wider.So in conclusion,the expansion of economy didn't bring as much benefit to the poor as we expected.Pro-Poor Growth then becomes a focused topic.On the research basis of measuring poor and the relationship between pro-poor growth and economic growth of former papers,we did some further research.In this paper,we measured the poor range and pro-poor index from 2011 to 2013 of 14 provinces in China with FGT index and PEGR index.Then established a pool data model to look into the relationship between fiscal spending and pro-poor growth.The conclusion of this paper is:Firstly,the economic growth of our country between 2011 and 2013 is generally pro-poor.The headcount of poverty in urban and rural area is both downward.However,inequality of income distribution in rural area is getting worse.Secondly,among all the factors,economic growth,fixed asset investment and educational spending are pro-poor in reducing the headcount of poverty.Economic growth,fixed asset investment,welfare spending and medical spending are effective in reducing the inequality among the poor.In this paper,we suggest that we should invest more on education,medical and infrastructure,especially in poor area.In this way,the poor can earn more through rapid growth of our country.