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Forethought for Long-term Poverty Reduction——Evidence from Pilot Poverty Alleviation Reform Zones

【Authors】
ZHANG Nan, ZHANG Donghao, LI Jianjun & LU Hongyou
【WorkUnit】
ZHANG Nan, ZHANG Donghao, LI Jianjun (Southwestern University of Finance and Economics, 611130)LU Hongyou (Wuhan University, 430072)
【Abstract】

Consolidating poverty alleviation achievements and eradicating relative poverty are the major challenges of China's long-term poverty reduction after 2020. Against this background, the eastern region has taken the lead in innovating and practicing. Taking the data of 80 prefecture-level cities in eastern China from 2003 to 2016 as the sample and using pilot poverty alleviation reform areas as the quasi-natural experiment, this paper studies the poverty reduction effect, mechanism and channels of the reform zone policies by using the synthetic control method. The results show that these policies have significant effects on income increase and multidimensional poverty alleviation. In terms of different regions, Lishui has the most obvious poverty reduction effect while Fuxin and Qingyuan only see some mediocre effects. Household income in the pilot areas increased while poverty vulnerability and chronic poverty decreased. Further analysis shows that the macro mechanism leading to such differences lies in inclusive growth, while policies have an indirect impact on household income and poverty reduction mainly through insurance coverage, financial participation and social networks. The conclusion of this paper has important value for formulating differentiated poverty alleviation policies, reforming the poverty monitoring mechanism, constructing the multi-party mechanism and the integrated urban-rural anti-poverty system.

 

JEL:H30, P36, R11

【KeyWords】
Pilot Poverty Alleviation Reform Zones, Multidimensional Poverty Alleviation, Poverty Vulnerability, Synthetic Control Method