Evaluation of the Rural Minimum Living Standard Line in China

Jiandong Chen, Sishi Rong, Malin Song and Baofeng Shi

Emerging Markets Finance and Trade, 2020, vol. 56, issue 9, 1971-1988

Abstract: China’s rural minimum living security system guarantees life’s essentials to rural poor. However, rural minimum living security funds mainly come from local public finance, whose shortage lowers the rural minimum living standard line (RMLSL). Based on Tapio decoupling method, this study evaluates the relationship between prefectural RMLSL and per capita GDP, rural consumer price index, and per capita income of rural poor. Furthermore, we compare the provincial and prefectural RMLSLs with survival line, subsistence living, and development line, based on extended linear expenditure system model and Maslow’s demand hierarchical theory. Based on the analysis, we propose policies to improve RMLSL.

Date: 2020
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DOI: 10.1080/1540496X.2019.1588108

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