Evaluating the effects of the targeted poverty alleviation programs on development: The case of China

Abstract

China eradicated absolute poverty recently. This research assessed the role of the targeted poverty alleviation program in fostering economic development in China. This study employed a difference-in-differences design and a propensity score matching estimation. It can be found that counties selected as targeted impoverished counties have significantly worse economic conditions than their counterparts. However, receiving policy treatment as targeted counties fosters economic development. There is little heterogeneity in the impact of the poverty alleviation program. Why the targeted poverty alleviation program has a significant role in eliminating absolute poverty in China will also be explained.