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Evaluating the Impact of China's Fourth Round of Poverty Alleviation Program

Author

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  • Huang, Kaixing
  • You, Yaxuan

Abstract

This study evaluates the impact of China's fourth round of poverty alleviation program, which targeted 14 contiguous destitute areas containing 680 counties and a population of 240 million. From 2012 to 2019, China allocated a total of 813.6 billion yuan (US$126.1 billion), primarily to economic development programs within these 14 areas. Using county-level data from 2006 to 2019, our difference-in-differences and difference-in-discontinuities estimates suggest that the program increased GDP per capita in the 14 areas by over 45% from 2012 to 2019, with substantial gains observed in both the agricultural and non-agricultural sectors. Our preferred estimates suggest a rate of return to the program ranged from 155.8% to 165.8%. By using data from over 14,500 rural households from 2006 to 2015, we find that the program significantly elevated rural income and reduced rural poverty. While the income growth of extremely poor households was propelled more by agricultural income growth, the income growth of relatively poor households primarily resulted from non-agricultural sources.

Suggested Citation

  • Huang, Kaixing & You, Yaxuan, 2024. "Evaluating the Impact of China's Fourth Round of Poverty Alleviation Program," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344251, International Association of Agricultural Economists (IAAE).
    • Handle: RePEc:ags:cfcp15:344251
    DOI: 10.22004/ag.econ.344251
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