Poverty in India and China.
Datasets: World Bank World Development Indicators http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators Background data collection and analysis: 1. Download data on the poverty rate at $1.90/day, $3.20/day, and $5.50/day for China and India for the earliest year available (1990 for China, 1977 for India) and the latest year available (2015 for China, 2011 for India). Use the series Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population), Poverty headcount ratio at $3.20 a day (2011 PPP) (% of population), and Poverty headcount ratio at $5.50 a day (2011 PPP) (% of population). 2. Download GDP per capita for the same years as the poverty data (use GDP per capita (constant 2010 US$)). 3. For China and India separately, calculate the correlation coefficient between GDP per capita and each measure of poverty. 4. Ravallion (2010) calculates the growth elasticity of poverty reduction. Calculate this variable for both China and India by dividing the percentage change in the poverty rate (over the longest period available) by the percentage change in per-capita GDP over the same period. Do this calculation using the $1.90/day poverty rate, the $3.20/day poverty rate, and the $5.50/day poverty rate. Measure the percentage changes using the compound annual growth rate (CAGR) formula given in Assignment 1. Essay: In your essay, describe the changes over time in poverty in China and India. Compare the two countries to each other, and discuss the reasons why you believe these countries have experienced these changes over time. What government policies does Ravallion (2010) identify that have affected poverty in China and India? What does the growth elasticity of poverty reduction tell us?