Evaluation of the Rural Minimum Living Standard Line in China

ABSTRACT

China’s rural minimum living security system guarantees life’s essentials to rural poor. However, rural minimum living security funds mainly come from local public finance, whose shortage lowers the rural minimum living standard line (RMLSL). Based on Tapio decoupling method, this study evaluates the relationship between prefectural RMLSL and per capita GDP, rural consumer price index, and per capita income of rural poor. Furthermore, we compare the provincial and prefectural RMLSLs with survival line, subsistence living, and development line, based on extended linear expenditure system model and Maslow’s demand hierarchical theory. Based on the analysis, we propose policies to improve RMLSL.

KEY WORDS:

• ELES model
• minimum living standard line
• public finance
• Tapio decoupling method

JEL:

• E60
• G11

Additional information

Funding

This work was supported by the Social Science Foundation of Shaanxi Province [2018D51]; Key Project of National Natural Science Foundation of China [71731003]; National Natural Science Foundation of China [Grant Nos. 71873103, 71503199]; the Sichuan Province Social Science High Level Research Team Building Program.