Resource-based economic growth on poverty reduction role-in rural areas of Shanxi

Abstract

This study uses the income of rural residents per capita income grouping and panel data of 2001-2010 from "Shanxi Statistical Yearbook". The study uses the World Bank's software Povcal and the purchasing power of $ 1.25 per person per day as the poverty line to measure the index of the extent of poverty in rural areas in Shanxi Province. It was found that the poverty rate decreases exponentially significant effect, but the poverty gap index decreased to a lesser extent and the poverty gap squared index relatively rose. This suggests that economic growth to poverty reduction of the total population especially to the poor in the richer part of the population has a distinct role, but to the poor population living in extreme poverty has negative effects. Rapid economic growth will increase extreme poverty, resulting in further widening the gap between rich and poor. © 2013 Asian Network for Scientific Information.