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Economic Performance of Fiscal anti-Poverty Funds in China

Author

Listed:
  • Tongwei Qiu
  • Xinjie Shi
  • Yifei Li
  • Biliang Luo

Abstract

In 2013, China launched her targeted poverty alleviation, and a large amount of fiscal anti-poverty funds have been invested. However, whether the enormous fiscal anti-poverty funds have had a positive impact on the local economy has been ambiguous. This study investigates the impact of fiscal anti-poverty funds on local economic growth, drawing on Chinese fiscal data at the county level. Our results indicate that fiscal anti-poverty funds are not conducive to local economic growth. Further analysis reveals that anti-poverty funds reduce fiscal support for the service industry, manufacturing industry, enterprise development, and technical innovation. This is because impoverished counties are forced to supply extra fiscal anti-poverty funds, which leads to compression of fiscal expenditures in other areas due to local deficient finance.

Suggested Citation

  • Tongwei Qiu & Xinjie Shi & Yifei Li & Biliang Luo, 2024. "Economic Performance of Fiscal anti-Poverty Funds in China," Journal of Development Studies, Taylor & Francis Journals, vol. 60(6), pages 895-913, June.
    • Handle: RePEc:taf:jdevst:v:60:y:2024:i:6:p:895-913
    DOI: 10.1080/00220388.2023.2284662
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