The impact of China's economic growth on poverty alleviation: From absolute to relative poverty

TL;DR

This paper analyzes China's economic growth from 2011 to 2022, showing how it eradicated absolute poverty but increased income inequality, highlighting the need for policies balancing growth and equity to address relative poverty.

Contribution

It provides a comprehensive analysis of China's transition from absolute to relative poverty, emphasizing the dual effects of economic growth on poverty and inequality.

Findings

Economic growth eradicated absolute poverty in China.

Income inequality increased, as shown by rising Gini Coefficient.

Addressing relative poverty requires balancing growth with equitable resource distribution.

Abstract

This paper investigates the extent to which China's economic growth and development influence poverty levels, focusing on the dichotomy between absolute and relative poverty. Leveraging data from sources like the World Bank, Statista, and Macrotrends, and employing economic frameworks such as the Lewis Model, Poverty Headcount Ratio, and Gini Coefficient, the study examines China's transformation from combating absolute poverty to addressing relative poverty. The findings highlight that robust economic growth from 2011 to 2022, driven by urban development and rural infrastructure investments, successfully eradicated absolute poverty and elevated rural incomes. However, this progress also exacerbated income inequality, as evidenced by a rising Gini Coefficient, complicating efforts to alleviate relative poverty. Through multidimensional analyses encompassing regional disparities, migration patterns, educational access, and societal factors, the paper underscores the dual impact of economic development on poverty alleviation. It concludes by advocating for policies that balance economic growth with equitable resource distribution to tackle persistent relative poverty and foster sustainable development.