Pro-poor growth and the realization of common prosperity of socialism with Chinese characteristics

Abstract

Purpose As the essential requirement of socialism with Chinese characteristics, common prosperity stands for both the goal of and the approach to economic growth. Shared development is a new stage of the process of common prosperity. From the perspective of economic growth, it requires the low- and middle-income groups to gain more from the growth than high-income groups. The paper aims to discuss these issues. Design/methodology/approach Based on provincial panel data, the random effect model and the dynamic panel model are used in this paper to analyze the path to achieve pro-poor growth. Findings The keys to achieve pro-poor growth are first to promote new urbanization with people at the center, diversify the forms of employment and improve the income structure of the residents, and second to improve the accuracy in designing redistribution policies. Originality/value After the realization of “some get rich first” policy, it is important to swiftly adapt to a new mindset of shared development, which charters a new course to the Marxist common prosperity. There exist few established economic theories or action plans with respect to shared development. Pro-poor growth, however, offers a perspective to achieve both sharing and development.