Economic growth, income inequality and poverty in China under economic reforms

China's GDP more than quadrupled between 1978 and 1996 under economic reforms. This article assesses the relationship between economic growth, income inequality and poverty using both secondary and household survey data. The main findings are (1) urban/rural divide and spatial inequality are two major factors accounting for overall income inequality; (2) non-wage and non-farm incomes are more unequality distributed than wage and farm incomes; and (3) the incidence of poverty is very sensitive to the changes in per capita income and inequality. (DSE/DÜI)