Alleviating Poverty Like China: Evidence from the Poverty Alleviation and Development Plans

Li Hui*1, Zhang Ziyao2, Yin Heng3

1 School of Economics and Management, Wuhan University, Wuhan, China

2 School of Finance and Taxation; Center for Innovation and Expertise in Income Distribution and Modern Finance, Zhongnan University of Economics and Law (ZUEL), Wuhan, China

3 National Academy of Development and Strategy, Renmin University of China, Beijing, China

Abstract: Amid China’s rapid economic growth, significant regional imbalances persisted. To address this disparity, it is essential to pursue high-quality development by fostering endogenous drivers within poverty-stricken areas. In late 2011, the Chinese government introduced a new nationwide regional poverty alleviation and development program. This study examines the macroeconomic impacts and micro-level mechanisms of these policies by leveraging manually compiled policy documents and macro and micro data (county economies, enterprises, and land transactions), using a DID approach. The findings reveal that the program significantly boosted economic growth in poor regions without causing negative spillovers to neighboring or paired-assistance areas. Economic growth in the assisted regions was primarily driven by industrialization, encompassing both scale expansion and efficiency gains. A cost-benefit analysis further confirms substantial economic returns and long-term fiscal sustainability. These results provide important policy implications for refining regional poverty policies and advancing balanced development.

Keywords: Regional poverty policy; High-quality development; Difference-in-Differences (DID)

JEL Classification Codes: H50; O14; O25; R11

DOI: 10.19602/j. chinaeconomist.2025.09.01