Rural Households’ Poverty and Relocation and Settlement: Evidence from Western China

Abstract

Based on survey data collected from five counties across southern Shaanxi, China, the present study employs a multinomial logistic model to explore the main factors related to the type of poverty of rural households, particularly focusing on the role of relocation time, reason for relocation, and type of relocation. The results showed that three types of poverty, “voluntary poverty”, “transient poverty”, and “chronic poverty”, are distinguished by combining income and consumption criteria. Moreover, relocation and settlement programs contribute to a certain degree to these three kinds of poverty, and the effects vary according to the relocation characteristics. Specifically, those relocated long-term were more likely to be trapped in “voluntary poverty” and “chronic poverty”, whereas those relocated short-term were less likely to fall into “voluntary poverty” and “transient poverty”. The poverty alleviation and disaster-related resettlers were less likely to be trapped in “chronic poverty”, whereas centralized resettlers were less likely to be trapped in “voluntary poverty” and “chronic poverty”. Additionally, demographic characteristics, capital endowment variables, and geographical features are all important factors affecting rural households’ type of poverty. This study can serve as a reference for further resettlement practice in China and other developing countries.