Multi-dimensional Intertemporal Poverty in strongRuralstrong China.pdf

* Multi-dimensional Intertemporal Poverty in Rural China Jing You,1, 2 Sangui Wang,1, † Laurence Roope3 Abstract We analyse intertemporal poverty in two important dimensions – income and nutrition – in less developed northwest China during 2000-2004. A generalised recursive selection model is proposed which enables simultaneous estimation of the causes of intertemporal poverty within and between dimensions. Improvement in agricultural production is crucial for reducing both dimensions of intertemporal poverty. We find evidence suggestive of intertemporal income-nutrition poverty traps. Higher labour productivity, especially in agriculture rather than local off-farm activities or out- migration, holds much potential for breaking the vicious circle. Agricultural innovation and mechanisation, regarded by the government as indispensable, yield mixed outcomes for intertemporal multi-dimensional poverty reduction. Key words: intertemporal poverty, multi-dimensional poverty, rural China JEL codes: D63, I3, O52 1. School of Agricultural Economics and Rural Development, Renmin University of China; 2. Department of Land Economy, University of Cambridge; 3. Health Economics Research Centre, University of Oxford. * You and Wang: School of Agricultural Economics and Rural Development, Renmin University of China, 59 Zhongguancun Street, Beijing 100872, China. (e-mail: jing.you@ and wangsg@); Roope: Health Economics Research Centre, Nuffield Department of Population Health, University of Oxford, Old Road Campus, Oxfo