The Impact of High-Standard Farmland Construction Policy on Rural Poverty in China

Abstract

As the core component of agricultural development projects, high-standard farmland construction is a reliable measure of agricultural production, and can be used to improve the economy in rural areas. Based on provincial panel data, this paper adopts the continuous difference-in-differences (DID) method to analyze the impact of China’s high-standard basic farmland construction policy on the incidence of rural poverty and its mechanisms. The results show that this policy can significantly reduce the incidence of rural poverty by 7.4%, and if, after using robust standard error and bootstrap sampling 1000 times for a robustness test, the regression results are still robust, this also shows that this inhibitory effect is stable and persistent. It can be seen from a heterogeneity analysis that the implementation of the policy has a more significant effect on poverty reduction in areas with a higher incidence of rural poverty and a larger scale of land remediation, as well as areas in the eastern and western regions. A mechanism analysis shows that natural disasters, output value and technological progress play a partial intermediary role in the poverty reduction effects of high-standard basic farmland construction policy, and the intermediary effects are 5.79%, 44.03%, and 14.13%, respectively. This paper suggests that we should continue to promote the construction of high-standard basic farmland, explore suitable construction modes of high-standard basic farmland for different regions, continuously promote the process of agricultural modernization, and broaden the ways through which rural residents are able to accumulate capital to promote rural poverty reduction and revitalization.