Can Poverty Be Alleviated in China?

21 Pages Posted: 20 Feb 2018

See all articles by Cong Qin

Cong Qin

Center for Financial Engineering

Terence Tai-Leung Chong

The Chinese University of Hong Kong (CUHK) - Lau Chor Tak Institute of Global Economics and Finance

Date Written: March 2018

Abstract

The 2000s witnessed the third poverty alleviation wave in China. Compared with its predecessors, the third wave distinguished itself by new interventions and redefined standards for the National Poor Counties. This paper evaluates the effectiveness of the new program using a data set consisting of 1,411 of China's western and central counties from 2000 to 2010. It combines the propensity score matching method with the difference‐in‐differences approach, which helps to avoid selection bias and track the policy impact on variables of interest at each time point. It is found that the non‐western local governments tended to manipulate data on income and output growth to maintain the special transfer payments disbursed exclusively to the National Poor Counties. It is also shown that the program failed to improve the infrastructure and sanitary conditions in general.

Keywords: average treatment effect on treated, poverty alleviation, propensity score matching, receiver operating characteristic curve, National Poor Counties

JEL Classification: H23, H71

Suggested Citation

Qin, Cong and Chong, Terence Tai-Leung, Can Poverty Be Alleviated in China? (March 2018). Review of Income and Wealth, Vol. 64, Issue 1, pp. 192-212, 2018. Available at SSRN: https://ssrn.com/abstract=3124679 or http://dx.doi.org/10.1111/roiw.12273

Cong Qin (Contact Author)

Center for Financial Engineering ( email )

No. 1 Shizi Street, Center for Financial Engineeri
Suzhou, 215006
China
13656190706 (Phone)

Terence Tai-Leung Chong

The Chinese University of Hong Kong (CUHK) - Lau Chor Tak Institute of Global Economics and Finance ( email )

13/F, Cheng Yu Tung Building
12 Chak Cheung Street
Hong Kong, Shatin, N.T.
Hong Kong

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