Poverty dynamics in rural China revisited: do assets matter?

Jing You

Journal of Economic Policy Reform, 2014, vol. 17, issue 4, 322-340

Abstract: This paper uses an asset-based approach to examine poverty dynamics in rural China over the period 1989–2006. The analysis documents a significant structural component in the poverty dynamics of households. The lack of profitable agricultural asset accumulation plays an unneglectable role in causing households to be trapped in persistent poverty. The escape from poverty is increasingly dominated by stochastic upward mobility rather than by structural movement in terms of asset accumulation. This could threaten the prospect of poverty reduction in rural China. It is argued that future reform and policy-making should pay more attention to building households’ asset base.

Date: 2014
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DOI: 10.1080/17487870.2014.920705

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