Using 2000-04 panel data this study analyses the pathways rural households followed out of poverty in two lagging provinces of China, Inner Mongolia and Gansu. Rising labour productivity in agriculture has been key, and still holds much promise. Labour mobility has also been important in Gansu....

China has achieved remarkable accomplishments in poverty reduction in the 30 years since it launched its reform and opening-up policy. During this period, more than 500 million people who once lived on less than US $1 a day have risen out of poverty, including 240 million who once lived in...