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Research on Rural Poverty Reduction Effect of Income Growth and Distribution Structure Distortion
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TitleResearch on Rural Poverty Reduction Effect of Income Growth and Distribution Structure Distortion  
AuthorChen Fei and Lu Jianci  
OrganizationSchool of Mathematics & Quantitative Economics, Center for Econometric Analysis and Forecasting, Dongbei University of Finance and Economics 
Emailcfei2000@163.com,jiancilu@163.com 
Key WordsRural Poverty Reduction Effect; Income Growth; Distribution Structure Distortion; Lorenz Curve 
AbstractReducing rural poverty population is an important part of “Agriculture, Countryside and Farmer” issues. Firstly, this paper builds a theoretical analysis framework on economic growth, income distribution and proverty ruduction, and then develops a new Lorenz curve model to construct a distribution density function on rural household income of our country, and makes further improvement and modification of Poverty-Growth-Inequality arithmetic. Furthermore, we use rural household data from the China Health and Nutrition Survey (CHNS) to make an empirical analysis on the rural poverty reduction effect of income growth and distribution structure distortion in east and Mid-west provinces during 1991-2009. The empirical results show that income growth has declined poverty population, however, distribution inequality has cut down poverty ruduction and also caused income share shrinking of low income groups constantly. By comparing, distribution inequality degree is much more obvious in Mid-west provinces than that of east coastal provinces, and 2000 later than before. Besides, Blinder-Oaxaca type equation decomposition results show that non-agricultural economic activity, education level, location and cultivated land area are respectively important influential factors of farmers' income in individual level. However, at present major obstacles to restrain income growth of rural poverty family are the low non-agricultural economic activity participation rate and poor education level. 
Serial NumberWP576 
Time2014-01-14 
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