Abstract
Using the 2011-2012 county-level panel data, the paper empirically investigates whether counties exited from the poverty alleviation program affect their economic growth. The identification uses the adjustment of lists of national poverty counties initiated by Chinese government in 2011. It shows that the poverty alleviation program leads to large gains in economy growth that are eventually reversed when the counties quit from the program. Besides, the fiscal revenues and expenditures significantly decline when previous national poverty counties are excluded from the lists.
Highlights
Over the past twenty years, China has made great achievements in the process of antipoverty
The identification uses the adjustment of lists of national poverty counties initiated by Chinese government in 2011. It shows that the poverty alleviation program leads to large gains in economy growth that are eventually reversed when the counties quit from the program
The economic growth rate of treatment groups reduces 7.4% after they withdraw from the poverty alleviation program
Summary
Over the past twenty years, China has made great achievements in the process of antipoverty. The paper evaluates the persistent effects of a large-scale poverty alleviation program instituted by the Chinese government in 2001. It is called the third wave of China’s poverty alleviation program. Over the course of its eleven-year operation from 2001 to 2011, the income and consumption of families in the poverty counties increase 6.1% and 9.2% respectively [7] It improves per capita net income of targeted peasants [8]. The paper focuses on the impacts to the counties removed from the lists of the poverty alleviation program on fiscal revenues, expenditures, education and health. It is beneficial for central government to draw up policies to improve the fiscal position and education of counties which have exited from the poverty program
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