Rural Public Expenditure and Poverty Alleviation in China: A Spatial Econometric Analysis

Abstract

In China, one of the most important reducing poverty means is continuous and large-scale public financial investment. This paper investigated the structural differences between rural public expenditure (namely, education, health, social security, infrastructure, living environment) and poverty in 27 provinces of China in 2010-2016 from the spatial econometric perspective. The results showed the structural differences in poverty reduction effects of government spending are very obvious, indicating that expenditures on education, health care, social security and infrastructure have all shown good poverty alleviation effects, while living environment spending has no significant effect on poverty reduction. We further find that government spending not only promote poverty reduction in the region, but also reduce poverty in economically and geographically similar areas, which suggests that future work should look more closely at whether and how the effect of government spending on poverty varies by structure. Thus, the findings established in this paper have significant implications for targeted poverty alleviation measures in China through government spending policies.

Efficiency of Government Spending in Reducing Poverty Rate in Bengkulu Province

“…While health spending has no effect (Syamsuri &;Budiyono, 2018). The effects of spending on education, health, care, social security and infrastructure have a significant impact on poverty reduction in China (Liu et al, 2020). In Brazil, people are more supportive of retributive programs that increase their income in the short term such as cash transfers (Bursztyn, 2016).…”

Relationship Between Public Expenditure, Economic Growth and Poverty

“…Similarly, Omodero (2019) examined the role of sectoral public expenditure on poverty reduction for a period of 17 years (2000 to 2017) with the ordinary least squares (OLS) technique, they showed that public expenditure on agriculture, construction, education and health have no significant impact on poverty reduction in Nigeria. Liu and al (2020) examined the structural differences between rural public spending (education, health, social security, infrastructure, living environment) and poverty in 27 provinces in China for a 16-year period from 2010 to 2016. The result of this study showed that spending on education, health, social security and infrastructure all contributed more to poverty reduction, while spending on the living environ menthad no significant effect on poverty reduction.…”

Research on Performance of Modern Rural Financial Poverty Alleviation Based on Data Envelopment Method

“…However, there is very little comparative analysis of capital input and output. Therefore, the two scholars used data envelopment analysis to study the benefits of poverty alleviation funds (Liu and Li, 2008). On the basis of researching related theoretical literature, Huang Xinmei used principal component analysis and data packet network method to evaluate the poverty alleviation performance of Jiangjin District and pointed out the deficiencies in the poverty alleviation work of Jiangjin District (Huang, 2018).…”