Dissertation
Dissertation > Economic > The world economic profiles,economic history,economic geography > China's economy > People's living conditions

An Empirical Analysis of Urban Poverty Variation in Shanxi

Author GaoYan
Tutor MiZiChuan
School Shanxi University of Finance
Course Statistics
Keywords Urban poverty measure Poverty decomposition Elastic analysis Income distribution Error correction model
CLC F126
Type Master's thesis
Year 2014
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For a long time, the problem of poverty has been identified as essentially a ruralphenomenon,and the government in the formulation of relevant policies mainly focuson how to eliminate the problem of rural poverty. In fact, the urban areas also lurk avariety of poverty problems,and they are closely related to solving the problems of thetransformation of urban economic system, the adjustment of urban industrialstructure,and the migrant workers who transfer from rural to urban. In recent years, theproblem of urban poverty along with the rapid development of urban economy,significantly improvment of the level of per capita income of urban residents, theexcessive expansion of income gap within cities, presents an increasingly grim trend.This paper takes urban poverty in Shanxi province as the object of study, drawinglessons from the existing research results of experts and scholars on the povertyproblem, combined with the actual situation of our province, and analyse the problem ofurban poverty in our province deeply. First, the average income below the poverty lineand the survey sample are given under the premise, using the POVCAL softwarecalculated the poverty index and the Gene coefficient on income packet data in goodorder, in order to have a good knowledge of the situation of urban poverty in Shanxiprovince.Second, decompose and elastically analyse the urban poverty of Shanxi Province.When decomposing the changes of poverty index, I did not adopt the common way ofparameter estimation in econometrics, but using the poverty decomposition methodproposed by Kakwani, broke it down to two dimensions: economic growth effect andincome distribution inequality effect. The economic growth has a negative effect on thechanges of poverty, and the negative effect gradually increased along with the boomingof economy. The effect of income distribution to the changes of poverty index firstincreased and then decreased, but the poverty index for the unfair distribution ofincome increased significantly stronger than the reduction effect of economic growthto poverty.Again, combined with some existing research result on the cause of povertyconducted by experts and scholars, select the relevant statistical indicators:the cost ofliving, income inequality, competition, industry structure, and other uncertain factors, using the econometric methods, combining qualitative way and quantitative way,dataand theory, reinterpret the cause of influencing the changes of Shanxi Urban Poverty.Income distribution inequality, higher living costs, and irrational industrial structure, aremain reasons that lead to the urban poverty in Shanxi Province.Among these factors,the fairness of the distribution plays the most important role.Finally, based on the practical problems existing in our province, in order toeffectively alleviate the urban phenomenon, promote the development of economy inour province, solve the people’s livelihood problem, I put forward some specificmeasures: accelerate the transformation of economic development mode, increaseemployment, improve the distribution mechanism, increase education subsidies,improve the social security system and so on.

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