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RIEB, Kobe University Site Map Access 日本語 Home Research & Education Publications RIEB Discussion Paper Series (English) RIEB Discussion Paper Series No.2014-28 RIEB Discussion Paper Series No.2014-28 Title Decoding the Growth-Nutrition Nexus in China: Inequality, Uncertainty and Food Insecurity Abstract Chinese households have experienced significant income growth, while their nutrition intake has not increased pari passu. This paper uses household data in both rural and urban China over the period 1989-2009 to explain the paradox of higher income but lower nutrition. In addition to traditional inputs into nutrition intake, we emphasise different sources of income, the heterogeneous income effects across households, and the price effects under rising and volatile food prices. The instrumental variable estimation shows that, although nutrition is not responsive to aggregate income, pro-agriculture income growth in terms of proportionally more crop income raises rural households' nutrient intake, while business and wage income improves urban households' nutrition. The estimation of a quantile instrumental variable fixed-effects panel model further documents a nutrition-improving effect of income for the least nourished and only the better-nourished are able to benefit from widely believed contributors of nutrition intake such as dietary knowledge, local off-farm employment and out-migration. Uncertainties attached to prices of meat, eggs and oil and fat accentuate nutrition poverty and can off-set the positive income effect, raising the risk of food insecurity despite growing income. Keywords Food security, Nutrition, Inequality, Poverty, IV regression, Quantile regression JEL Classification C23, I10, I31, O53, Q18 Inquiries Jing YOU School of Agricultural Economics and Rural Development Renmin University of China, China Katsushi S. IMAI School of Social Sciences, University of Manchester, UK and Research Institute for Economics and Business Administration Kobe University Rokkodai-cho, Nada-ku, Kobe 657-8501 Japan Phone: +81-78-803-7036 FAX: +81-78-803-7059 Raghav GAIHA Faculty of Management Studies, University of Delhi, India and Statistics and Studies for Development(SSD) Division, Strategy and Knowledge Management Department, International Fund for Agricultural Development(IFAD), Italy About RIEB Faculty Seminars at RIEB Research & Education Sections Kobe University Site Policy Site Map Access Contact Us Copyright©1996-2018 Research Institute for Economics and Business Administration, Kobe University. All Rights Reserved.