Poverty Reduction Effects Research Articles

Does younger children's social health insurance alleviate household impoverishment due to illness?

The ambitious expansion of social health insurance in China has played a crucial role in preventing and alleviating poverty caused by illness. However, there is no government-sponsored health insurance program specifically for younger children and inequities are more pronounced in healthcare utilization, medical expenditure, and satisfaction in some households with severely ill children. This study assessed the effectiveness of child health insurance in terms of alleviating poverty caused by illness. Data were collected from two rounds of follow-up surveys using the China Family Panel Studies 2016 and 2018 child questionnaires to investigate the relationship between child health insurance and household medical impoverishment (MI). Impoverishing health expenditure (IHE) and catastrophic health expenditure (CHE) were measured to quantify "poverty due to illness" in terms of absolute and relative poverty, respectively. Propensity score matching with the difference-in-differences (PSM-DID) method, robustness tests, and heterogeneity analysis were conducted to address endogeneity issues. Social health insurance for children significantly reduced household impoverishment due to illness. Under the shock of illness, the incidences of IHE and CHE were significantly lower in households with insured children. The poverty alleviation mechanism transmitted by children enrolled in social health insurance was primarily driven by hospitalization reimbursements and the proportion of out-of-pocket medical payments among the total medical expenditure for children. Children's possession of social health insurance significantly reduced the likelihood of household poverty due to illness. The poverty-reducing effect of social medical insurance is most significant in rural areas, low-income families, no-left-behind children, and infants. Targeted poverty alleviation strategies for marginalized groups and areas would ensure the equity and efficiency of health system reforms, contributing to the goal of universal health insurance coverage in China.

Does the Small-Scale Trade in Border Areas Contribute to Poverty Reduction?

With the vigorous development of strategies such as the "Belt and Road" Initiative, the Border Areas and Minorities Development Program, and the Western Development Program, China's border trade has flourished. Under the strong leadership of the Communist Party of China and the People's Government, China's poverty alleviation efforts have achieved remarkable results that have attracted worldwide attention, successfully eradicating the absolute poverty that has plagued the Chinese nation for many years. In this context, to investigate the impact of border trade on multidimensional poverty in border areas, this paper constructs a multidimensional poverty index from five dimensions: economy, healthcare, employment, education, and living conditions. A fixed-effects model is employed to empirically examine the impact of border trade on multidimensional poverty in border areas and its underlying mechanisms. The research findings are as follows: (1) Border trade significantly reduces the level of multidimensional poverty in border areas. This conclusion remains valid after conducting a series of robustness tests and using lagged variables as instrumental variables to address endogeneity issues. (2) Mechanism analysis reveals that border trade primarily improves multidimensional poverty through employment promotion effects, infrastructure effects, and fiscal expenditure effects. (3) Heterogeneity analysis shows that the poverty reduction effect of border trade is more pronounced in areas with lower population densities, lower urbanization rates, and in the southwestern and northwestern regions. This paper provides a new perspective for building common prosperity in the new era and offers academic support and policy guidance for further promoting border trade and strengthening friendly regional exchanges.

Differences in the impact of land transfer on poverty vulnerability among households with different livelihood structures

IntroductionEradicating poverty is the primary objective of the United Nations 2030 Agenda for Sustainable Development. While China has achieved great success in achieving poverty reduction targets, reducing the poverty vulnerability of rural households is crucial for ensuring the sustainability of poverty reduction gains. The purpose of land transfer is to ensure the continuous increase of farmers’ income through efficient land use; it has become an important initiative for poverty alleviation in rural areas. Existing studies have confirmed the positive effect of land transfer on poverty alleviation, but few have explored the difference in the impact of land transfer on poverty vulnerability of households with different income structures.MethodsUsing data from the China Family Panel Survey (CFPS) from 2010 to 2020, this paper empirically examines the impact of land transfer on poverty vulnerability.Results and discussionThe results show that land transfer has a significant positive impact on poverty vulnerability alleviation among rural households. Further comparing households with different livelihood structures, we find that land transfer is more effective in reducing poverty for non-farm employment-oriented household. Therefore, we suggest that the government should improve the land transfer system, increase agricultural subsidies, and consider the occupational differentiation among farmers to improve the poverty reduction effect of land transfer. These suggestions also provide a reference for promoting sustainable agricultural development and consolidating the achievements of poverty alleviation.

From poverty to prosperity: assessing of sustainable poverty reduction effect of “welfare-to-work” in Chinese counties

The “welfare-to-work” program is a comprehensive supportive policy in the 14th five-year plan period in China. In this paper, a systematical assessment of the long-run effectiveness of the welfare-to-work policy on poverty reduction is of great significance to stimulate the internal impetus of people who are lifted out of poverty to achieve income growth and prosperity and promote regional economic development. Based on the data at the county (city) level in China from 2000 to 2019 and the sustainable development theory, in this paper, a county-relative poverty evaluation system was constructed. Besides, the double difference method was employed to evaluate the effect of the welfare-to-work policy on poverty reduction and test its action mechanism. The findings are as follows: (1) the welfare-to-work policy has a significant poverty reduction effect and presents an inverted “U” shape. In addition, significant achievements have been made in “maintaining employment stability, ensuring income, strengthening skills, and supporting the economy” ; (2) the welfare-to-work policy boosts poverty reduction in counties through infrastructure construction, fiscal intervention, and financial tools; however, the financial tools play a positive role in poverty reduction in the northwest region and suppressed role in the southwest region, and has an insignificant effect in the central region; and (3) there are differences in the effect of poverty alleviation policies of the counties with different sustainable development levels, and the regions with higher development level have a stronger driving effect.

Exploring the poverty-reduction benefits of agricultural machinery socialization services in China: Implications for the sustainable development of farmers

Sustainable development is crucial for alleviating poverty among farmers. In this study, we examined the impact, and the mechanism underlying this impact, of the adoption of agricultural machinery services by farmers on their relative poverty from a multidimensional poverty perspective by employing the logit and ordered logit models and the Karlson–Holm–Breen (KHB) method. These results indicate that adopting agricultural machinery services can significantly reduce the probability of relative poverty among farmers, thereby expediting the sustainability of rural development. However, this poverty-reduction effect varies based on age and sex. The adoption of agricultural machinery services mainly reduces poverty by increasing farmers' human capital. Training in employment skills and non-agricultural work experience are the main transmission mechanisms. Therefore, the socialization of agricultural machinery services can be used as an effective policy tool to reduce relative poverty in developing countries, promote sustained improvements in farmers’ incomes, and achieve sustainability in rural development.

The Poverty Reduction Effect of Economic Growth: How Does Chinas Economic Growth Impact the Population Size of the Urban Livings of Minimum Living Allowance?

Poverty reduction is often seen as an easy solution to achieve economic growth. It is related to economic growth, as it reflects the improvement of the minimum standard of living and the rapid reduction of the impoverished population. In order to evaluate the effect of poverty reduction on China's economic growth in urban areas, this paper uses the proportion of urban subsistence allowances in the urban population and economic growth in each urban area as research variables. It presents the effect of poverty reduction in urban areas and regional differences. The study concludes that economic growth, income distribution, and education level have significantly reduced the proportion of the impoverished population. Looking at different time periods, the effect of poverty reduction after 2012 is more effective than before 2012, possibly because the government pays more attention to poverty reduction. From a regional perspective, the economic growth in the eastern region has a more significant impact on poverty reduction than any other region, which may be consistent with the different policy applications in each region.

How does payment for watershed ecosystem services alleviate farmer poverty in conservation intervention areas? Evidence from China.

Payment for watershed ecosystem services (PES) has been applied to water conservation and poverty reduction in an increasing number of developing countries. This study evaluates the effect of payment for watershed ecosystem services on farmers' income in conservation intervention areas using a difference-in-differences model and a panel dataset that covers 18 countries in the Xin'an River Basin in China for fourteen consecutive years (2006-2019). The results show that PES programs increase farmers' income and that the poverty reduction effect is sustainable. The PES programs mainly increase the farmers' income in conservation intervention areas through two paths: triggering the transfer of agricultural labor and promoting agricultural restructuring. PES programs are pro-poor and more conducive to increasing the income of farmers in upstream regions and counties with lower levels of economic development. This paper reveals the specific role played by PES in promoting rural poverty reduction in developing countries, providing insights into alleviating the contradiction between poverty and watershed ecosystem protection.

An analysis of the poverty reduction effects on land transfer: Evidence from rural areas in China.

This paper develops a multidimensional poverty index (MPI) evaluation system using multiple measures. We use the China Family Panel Study (CFPS) data to build balanced panel data from 2012 to 2018. Employing the probit model to analyze the impact of land transfer on relative poverty incidence, as well as utilizing the two-way fixed effects model and the logit model, we approach the issue from the perspective of multidimensional relative poverty identification. Our study indicates a decrease in relative poverty among rural households since 2012. Nonetheless, the overall incidence of relative poverty among rural households in China remains high at 20.6%, highlighting the severity of this issue in rural China. Moreover, we examine the heterogeneity of the poverty reduction effects of land transfer-in and land transfer-out. Land transfer can significantly reduce the incidence of relative poverty among rural households, with distinct mechanisms for land transfer-in and land transfer-out. Land transfer-in primarily reduces the relative poverty incidence of rural households through the education, housing, and land dimensions, while land transfer-out focuses on the quality-of-life dimension. Overall, land transfer-out has a more significant poverty reduction effect than land transfer-in. Furthermore, our study reveals that the reduction effect of land transfer on the incidence of relative poverty among rural households persists for at least two years, but by the fourth year, this effect disappears.

Health and health system effects on poverty: A narrative review of global evidence

Ill-health causes poverty. The effect runs through multiple mechanisms that span lifetimes and cross generations. Health systems can reduce poverty by improving health and weakening links from ill-health to poverty. This paper maps routes through which ill-health can cause poverty and identifies those that are potentially amenable to health policy. The review confirms that ill-health is an important contributor to poverty and it finds that the effect through health-related loss of earnings is often larger than that through medical expenses. Both effects are smaller in countries that are closer to universal health coverage and have higher social safety nets. The paper also reviews evidence from low- and middle-income countries (LMICs) and the United States (US) on the poverty-reduction effectiveness of public health insurance (PubHI) for low-income households. This reveals that PubHI does not always deliver financial protection to its targeted population in LMICs. Countries that have succeeded in achieving this goal often combine extension of coverage with supply-side interventions to build capacity and avoid perverse provider incentives in response to insurance. In the US, PubHI is effective in reducing poverty by shielding low-income households with children from healthcare costs and, consequently, generating long-run improvements in health that increase lifetime earnings. Poverty reduction is a potentially important co-benefit of health systems.

The Household Multidimensional Poverty Reduction Effects of Digital Financial Inclusion: A Financial Environment Perspective

The Household Multidimensional Poverty Reduction Effects of Digital Financial Inclusion: A Financial Environment Perspective

Exploring the disability–poverty nexus in children: a cross-national comparative analysis in Europe

By ratifying the United Nations Convention on the Rights of Persons with Disabilities, states committed themselves to ensure an adequate standard of living and social protection to all persons with disabilities, including children. Yet, prior studies showed that children with disabilities are more likely to grow up poor. Existing research has mainly focused on single-country case studies or comparative analyses for low- and middle-income countries. Due to the lack of good quality data, comparative studies on poverty outcomes, its determinants and the poverty-reducing role of social transfers among children with disabilities in high-income countries are largely missing. This article addresses these gaps using the 2017 EU-SILC cross-sectional survey. The results show great differences across Europe in the prevalence of childhood disability, the poverty outcomes of children with disabilities and the poverty-reducing effectiveness of social transfers for them. In only a third of European countries are children with disabilities more likely to live in poor households than children without disabilities. Countries that perform weakly for children without disabilities also perform weakly for children with disabilities. Moreover, social transfers achieve more for children with disabilities in more than half of European countries. The family’s employment participation and social background have the expected poverty-reducing effects for children with disabilities and children without disabilities, though the strength of some effects differs between the two groups within certain geographical regions. However, the income-based poverty indicator disregards the higher costs families with children with disabilities face which underestimates their poverty risk. More research is needed on which poverty indicator accurately reflects the real living standards of children with disabilities.

Emprego fora da fazenda e pobreza multidimensional: evidências empíricas da bacia do rio Amarelo na China

ABSTRACT: As an essential way to enhance farmers’ self-development ability, off-farm employment plays an indispensable role in farmers’ multidimensional poverty reduction in many countries. Employing a survey of 1926 farmers in five provinces of the Yellow River Basin in China, this paper examined the multi-dimensional poverty reduction effect of off-farm employment and the heterogeneous influence of different dimensions of off-farm employment (modes, levels, distances and frequency). The results showed that (1) although absolute poverty in the income dimension was largely eliminated in the Yellow River Basin, the poverty in social resources, transportation facilities, employment security were the key bottlenecks restricting farmers’ self-development. (2) The province with the best multidimensional poverty reduction effect for non-farm employment was Shaanxi, with the largest contribution to employment security. (3) Improving off-farm employment level, distance and time can significantly alleviate the multi-dimensional poverty of farmers. Therefore, to lessen the multi-dimensional poverty of farmers in the Yellow River Basin, it is necessary to focus on the governance of multi-dimensional key poverty-stricken areas, such as the middle and upper courses of the Yellow River, adopting multidimensional poverty alleviation strategy of off-farm employment according to local conditions, working on the farmers’ deficiencies in social resources, mobility, employment security, and deepening the effect of off-farm employment on benefiting farmers and helping the poor.

Highway networks and regional poverty: Evidence from Chinese counties

This paper establishes a staggered difference-in-differences (DID) model to estimate the impact of highways on regional poverty using county-level panel data from China. We construct a multidimensional poverty index and use satellite-monitored night light brightness as a proxy indicator. The results demonstrate that highways significantly reduce county poverty and that the poverty reduction effect becomes increasingly pronounced over time. This result remains robust after controlling for non-random highway route selection. Furthermore, the poverty reduction effect of highways is conditional, with a significant poverty reduction effect in the less economically-developed western regions and non-municipal counties, and no significant poverty reduction effect in the economically-developed eastern and central regions and municipal districts. Moreover, the poverty reduction effect of highways gradually decreases as the average altitude of counties increases. Our tests provide empirical evidence for effective road investments in developing countries that incorporate poverty alleviation targets.

Poverty Reduction Effect of Chinese Foreign Aid to Africa: An Empirical Study Based on Panel Data of 48 Recipient Countries

This research examines the impact and mechanisms of poverty alleviation associated with Chinese aid to African countries, utilizing comprehensive panel data from the 2000-2017 timeframe. A detailed exploration of salient indicators - the headcount ratio, poverty gap, and poverty severity - has been conducted to critically evaluate the efficacy of this aid. The study substantiates that Chinese aid meaningfully ameliorates the headcount ratio, lessens the poverty gap, and mitigates poverty severity in the recipient countries. Further examination of mechanisms reveals that the principal stratagem of reducing poverty resides in the proliferation of capital accumulation, fostering job generation, and advancing human capital development in the recipient countries. An assessment of varied outcomes demonstrates Chinese aid to be most potent in poverty alleviation in countries characterized by diminished per capita income and lower corruption indices. When compared, Official Development Assistance (ODA) exerts a more pronounced impact on curtailing poverty severity than other official aids, which have a more potent influence on reducing poverty incidence. Mixed aid-types demonstrate superior efficacy in decreasing poverty incidence, with development aid showing remarkable proficiency in addressing poverty depth and severity. This investigation significantly broadens the existing discourse on the poverty-reduction impact of Chinese foreign aid, offering invaluable insights and articulate points of reference for the enhancement of collaborative strategies in poverty alleviation policy between nations.

Does the BRI contribute to poverty reduction in countries along the Belt and Road? A DID-based empirical test

Most countries along the Belt and Road are developing countries that face pronounced challenges due to poverty. The Chinese government has committed to implementing the Belt and Road Initiative (BRI) to establish a ‘Road to Poverty Reduction’. This study explores the impact of the BRI on poverty reduction in participating countries as well as the mechanisms underlying this impact. This research is of great significance to the continuing implementation of the BRI and global poverty governance. Based on a panel dataset extending from 2005 to 2019 and encompassing 151 countries, this article uses the difference-in-differences method to examine the Initiative’s impact and conducts heterogeneity analysis to explore the mechanism underlying this impact in further detail. This approach results in four findings. First, joining the BRI can significantly reduce poverty rates in these countries. Second, the policy effect exhibits a time lag. In the long term, the poverty reduction effect becomes more significant. Third, the BRI can significantly reduce poverty in countries neighbouring China and in lower-middle-income countries. The Land Silk Road Economic Belt and the 21st-Century Maritime Silk Road distinctly reduce poverty. Fourth, the BRI contributes to poverty reduction in BRI countries by facilitating trade, enhancing financial and credit systems, increasing China’s greenfield investment, and establishing digital infrastructure. Additionally, the BRI promotes poverty reduction through increased bilateral visits and technical cooperation, whereas knowledge sharing remains an area in need of further development. Through theoretical analysis and empirical tests, this article evaluates the policy effect of the BRI on poverty alleviation, tests the underlying mechanism, and responds to some concerns expressed by the international community. The findings of this article provide a feasible direction for improving the ability of the BRI to reduce poverty more effectively in the future and thus achieve the United Nations’ sustainable development goals (SDGs).

Research on poverty reduction effect of digital financial inclusion based on K-LSTM-ecm modeling

Abstract In this paper, we use the K-LSTM-ecm model to test the mediation effect of digital financial inclusion and use the level of digital financial inclusion development as the threshold variable and core variable to examine the role of digital financial inclusion development on the poverty reduction effect. The variables are brought back to equilibrium by correcting the errors, and the coefficients of the different terms of the variables are utilized to carry out the calculation of the predictive value of digital financial inclusion. It has been found that the digitization degree index for digital financial inclusion increases fivefold, and the disposable income per capita of residents increases from 18,000 yuan to 31,000 yuan. It shows that the combination of digital financial inclusion and the K-LSTM-ecm model has certain practical significance for future rural financial innovation, as well as the development of financial technology.

Effects of health poverty alleviation project from the perspective of vulnerability to poverty: evidence from five Chinese prefectures

ABSTRACT Background The Health Poverty Alleviation Project (HPAP) has received widespread attention as a primary means of preventing poverty caused by illness. However, further evidence is required to confirm the effects of HPAP. Objective This study examines the effectiveness and mechanisms of action of HPAP using data from a special survey conducted in five Chinese prefectures in 2018–2019. Method This study uses a three-step feasible generalised least-squares method to measure the farm households’ vulnerability to poverty. Hierarchical linear regression and propensity score matching were employed to assess the poverty-reduction effects of HPAP. A mediating effects model was used to test how these policies alleviated poverty. Results The mean vulnerability to poverty among farm households was 0.367, with 11.89% experiencing both poverty and vulnerability, particularly in areas of deep poverty. This study has found that HPAP significantly reduces poverty and is more effective in reducing the vulnerability of non-poor farm households than poor farm households. Additionally, the results suggest that improving human capital stock and reducing medical expenditure are the two pathways through which HPAP can alleviate farm households’ vulnerability to poverty. Conclusions This study suggests that the vulnerability to poverty perspective should be incorporated into poverty alleviation policy formulation. HPAP enhances differentiation and precision. Thus, a long-term mechanism of HPAP should be developed.

The effects of agricultural commercialization on the multidimensional poverty of rural households: Evidence from China

AbstractBased on data from the China Family Panel Survey, this paper explores the impact of agricultural commercialization on household multidimensional poverty and its mechanism. The results show that agricultural commercialization has significantly reduced household multidimensional poverty, especially poverty in health and living standard. However, it may be that the income from commercialization has not all been converted into household multidimensional welfare, making the multidimensional poverty reduction effect of commercialization smaller than the income poverty reduction effect. Further research shows that a possible channel for agricultural commercialization to reduce multidimensional poverty is to improve farmers' ability to convert their endowments into earnings and consumption.

Impact of agricultural commercialization on dietary diversity and vulnerability to poverty: Insights from Chinese rural households

In this study, we examine the role of agricultural commercialization in influencing rural households’ dietary diversity and vulnerability to poverty. The instrumental variable (IV)-based approaches, including IV-Poisson and IV-Probit models, are employed to estimate the data collected through the China Land Economic Survey project. The results show that a higher level of agricultural commercialization is positively and significantly associated with higher dietary diversity and lower vulnerability to poverty. The poverty-reduction effect of agricultural commercialization is robust to the adjusted poverty line. Further analysis reveals that increasing the level of agricultural commercialization significantly increases the consumption levels of legumes, fruits, livestock meat, and poultry meat. The findings highlight the importance of linking farmers to markets for commercializing agricultural products, a practical way to improve rural household welfare and reduce the risk of falling into poverty.

Agricultural Machinery Socialization Service Adoption, Risks, and Relative Poverty of Farmers

Agricultural machinery socialization services are an important means of alleviating poverty and promoting agricultural modernization. Based on 2750 items of survey data from farmers in Henan Province, this paper empirically tests the impact and mechanism of agricultural machinery socialization service adoption on the relative poverty of farmers by using a binary logit model and mediation effect model. The results show that the adoption of agricultural machinery socialization services has a significant negative impact on the relative poverty of farmers. The reduction in natural risk plays an intermediary role in the impact of the adoption of agricultural machinery socialization services on the relative poverty of farmers. The size of the household labor force and the land operation scale affect the poverty reduction effect of agricultural machinery socialization services. It can be seen that in the relative poverty governance stage, we should improve the development of the agricultural machinery socialization service system, enhance the risk resistance of farmers, build a supporting system for farmers’ employment skills training, and encourage an orderly connection between the large-scale operation of agricultural land and the large-scale operation of services so as to fully realize the poverty reduction role of agricultural machinery socialization services.