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Do government transfers reduce poverty in China?: Micro evidence from five regions

Author

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  • Ben Westmore

    (OECD)

Abstract
This paper estimates urban and rural poverty rates across five Chinese administrative regions (Shanghai, Liaoning, Guangdong, Henan and Gansu) in 2014 using representative household level data from the China Family Panel Studies survey. The types of government transfer payments that households in poverty received and the ability for such payments to lift households from poverty are also assessed. Consistent with official estimates, the results highlight substantial disparities in poverty rates between administrative regions. Smaller differences exist between urban and rural locations within the same administrative region. In 2014, the most common types of government transfer received by households in poverty were agricultural subsidies or social assistance - principally the dibao. Regarding the latter, the results suggest some improvement in payment targeting in rural areas, but most dibao recipients had income above the poverty line (as defined in this paper) in 2014. Furthermore, across all administrative regions, the vast majority of households living below the defined poverty line did not receive social assistance at that time.

Suggested Citation

  • Ben Westmore, 2017. "Do government transfers reduce poverty in China?: Micro evidence from five regions," OECD Economics Department Working Papers 1415, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1415-en
    DOI: 10.1787/e5b343c1-en
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Harman Preet Singh & Ajay Singh & Fakhre Alam & Vikas Agrawal, 2022. "Impact of Sustainable Development Goals on Economic Growth in Saudi Arabia: Role of Education and Training," Sustainability, MDPI, vol. 14(21), pages 1-25, October.
    3. Zixuan He & Xiangming Fang & Nathan Rose & Xiaodong Zheng & Scott Rozelle, 2021. "Rural minimum living standard guarantee (rural Dibao) program boosts children's education outcomes in rural China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 13(1), pages 54-77, January.
    4. Mao, Hui & Fu, Yong, 2024. "Risk preference and relative poverty: An analysis based on the data of China Family Panel Studies," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 220-232.
    5. Mandla Abednico Mubecua, 2018. "China’s Progress in Poverty Reduction: What Can South Africa Learn from China to Attain the Poverty Eradication Goal in the Sustainable Development Goals?," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 91-98.
    6. Zhonghao Zhang & Shimeng Sun & Wanzhen Chen & Xuesong He, 2023. "Spatiotemporal patterns in China's Minimal Living allowances: The urban‐rural gap and regional differences revealed through a national poverty alleviation program," Growth and Change, Wiley Blackwell, vol. 54(1), pages 214-233, March.
    7. Junying Lin & Zhonggen Zhang & Lingli Lv, 2019. "The Impact of Program Participation on Rural Household Income: Evidence from China’s Whole Village Poverty Alleviation Program," Sustainability, MDPI, vol. 11(6), pages 1-15, March.
    8. Li, Jiaxin & Wang, Zihan & Cheng, Xin & Shuai, Jing & Shuai, Chuanmin & Liu, Jing, 2020. "Has solar PV achieved the national poverty alleviation goals? Empirical evidence from the performances of 52 villages in rural China," Energy, Elsevier, vol. 201(C).
    9. Yingfeng Fang & Fen Zhang, 2021. "The Future Path To China’s Poverty Reduction—Dynamic Decomposition Analysis With The Evolution Of China’s Poverty Reduction Policies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 507-538, December.
    10. Yongmin Luo & Shenqi Ding & Qiyuan Li & Min Gao, 2024. "Adding insult to injury: Living in a remote location increases the burden of gift expenses among the rural poor in China," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(5), pages 2229-2251, July.
    11. Duan, Wenqi & Jiang, Mingming & Qi, Jianhong, 2024. "Agricultural certification, market access and rural economic growth: Evidence from poverty-stricken counties in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 99-114.

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    More about this item

    Keywords

    China; development; poverty; social assistance policies;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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