China and India: Income inequality and poverty north and south of the Himalayas

Borooah, Vani K.; Gustafsson, Björn; Li, Shi

doi:10.1016/j.asieco.2006.08.001

Cited by 22 publications

(9 citation statements)

References 12 publications

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“…The poverty condition in the districts/cities of Aceh Province indicates that there is an inequality in income between these regions. Several previous studies have examined the relationship between income inequality and poverty (Borooah, Gustafsson, and Li, 2006), (Farzanegan and Habibpour, 2017) which concluded that if income inequality (Gini ratio decreases, the poverty rate also decreases).…”

Section: 22mentioning

confidence: 99%

Causality Relationship of Zakat, Income Inequality, and Poverty: A Panel Co-Integration Approach

Suriani¹,

Nurdin²,

Riyaldi³

2020

IJEBA

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Purpose: This study aims to analyze the potential of Zakat in distribution income policy and the causality relationship of Zakat income inequality and poverty. Design/Methodology/Approach: This study analyzes the causal relationship and the effect of Zakat, income inequality on poverty in 21 districts/cities of Aceh-Indonesia. To see the effect in the short and long term, time series analysis with Auto-Regressive Distributed Lag (ARDL) is used. The stages of the analysis test were carried out starting from the data stationarity test, optimal lag, cointegration test, and causality test. Findings: The estimation results show that in the long run, Zakat has a negative effect on poverty and income inequality has a positive effect on poverty. However, in the short run, both Zakat and income inequality do not affect poverty. Supported by the results of the causality test which shows that there is a one-way causal relationship between Zakat and poverty and Zakat with income inequality. Likewise, income inequality has a one-way causal relationship to poverty. Practical Implications: The findings of this research indicate that if the Zakat potential can be distributed optimally, then Zakat is the best policy solution to reduce poverty and income inequality. Originality/Value: The difference in this research from previous studies is to review the potential for Zakat that has become a regional policy in Aceh and to test it against poverty alleviation using the income inequality variable as a control variable. The analysis is strengthened by analyzing the causal relationship between the three variables.

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Section: 22mentioning

confidence: 99%

Causality Relationship of Zakat, Income Inequality, and Poverty: A Panel Co-Integration Approach

Suriani¹,

Nurdin²,

Riyaldi³

2020

IJEBA

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“…If there is a dark lining to these extraordinary achievements, it is the widening income gap across the country [4]. China's recent experience provides an excellent case to study the impacts of market-oriented reforms on income distribution and income inequality in many other countries experiencing rapid urbanization and economic transition [5][6][7][8][9].…”

Section: Introductionmentioning

confidence: 99%

Analysis of Income Inequality Based on Income Mobility for Poverty Alleviation in Rural China

Long

et al. 2015

Sustainability

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Abstract:Since the reform and opening up, the Chinese economy has achieved sustained high-speed growth. However, the widening gaps in income, especially for rural China, seem to be a dark lining to these extraordinary achievements. Taking the duration of poverty into the consideration, this article analyzes the income inequality of rural per capita net income (RPCNI) based on income mobility in rural China. Analysis results showed that Gini coefficient of RPCNI declined, but that income mobility was mainly limited in the interior for low-and high-income groups. Income inequalities rose sharply within eastern and western China from 1990 to 2010. Benefiting from the developed economy, the upward mobility was universal in eastern China. The spillover effect on neighboring poor counties was feeble in western China, which directly caused long-term rich and poor. The Gini coefficient of RPCNI in central China was always at a low level, corresponding to the phenomenon of short-term rich and long-term poor. In northeastern China, the Gini coefficient sharply decreased and the large body of income mobility between non-neighboring groups was quite remarkable. The spatial pattern of intra-provincial Gini coefficient and income mobility of RPCNI has been divided by the "HU line", which is a "geo-demographic demarcation line" discovered by Chinese population geographer HU Huanyong in 1935. In southeastern China, the characteristics of income mobility of each county depended on the distance between the county and the capital city. The spatial pattern of income mobility of RPCNI in agricultural provinces was different from that in non-agricultural provinces. According to the income inequality and income mobility, appropriate welfare and development policies was proposed to combat rural poverty at both regional and provincial scales.

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“…Farmers with more productive cropland have the potential to earn more returns and are less likely to fall into poverty (Borooah, Gustafsson, & Li, 2006;Huang, Rozelle, Lohmar, Huang, & Wang, 2006). Minority people in China usually live in regions with geographical features characterized by mountains, hills, plateaus, and deserts.…”

Section: Natural Capital and Income Inequalitymentioning

confidence: 99%

Income inequality among minority farmers in China: Does social capital have a role?

Liu

Paudel

et al. 2018

Review Development Economics

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We used recently available household panel data collected by China's National Bureau of Statistics to examine the effects of natural, human, material, and social capital on income inequality among minority farmers in China's Xinjiang Province between 2011 and 2012. Results obtained from panel quantile regression and correlated random effects’ models show that income inequality and the poverty of ethnic farmers have been decreasing to some extent. Results also indicated that human capital exacerbates income inequality among the minorities, whereas the effect of natural capital on income inequality is not evident. Social and material capital reduce income inequality among ethnic minorities. Results from the decomposition of the Gini coefficient indicate that material and social capital contribute to a substantial majority of the income inequality in the region.

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China and India: Income inequality and poverty north and south of the Himalayas

Cited by 22 publications

References 12 publications

Causality Relationship of Zakat, Income Inequality, and Poverty: A Panel Co-Integration Approach

Causality Relationship of Zakat, Income Inequality, and Poverty: A Panel Co-Integration Approach

Analysis of Income Inequality Based on Income Mobility for Poverty Alleviation in Rural China

Income inequality among minority farmers in China: Does social capital have a role?

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