Poverty Reduction in China: Experiencesand Measurement of Effects

Zhan Wang*

Institute of Industrial Economics (IIE), Chinese Academy of Social Sciences (CASS), Beijing, China

Abstract: This study employs the generalized method of moments (GMM) and panelvector autoregression (PVAR) models for a multi-factor quantitative dissection of China’spoverty reduction process across multiple stages, using provincial panel data from 2000to 2019. According to our research, economic growth and social development are the keydrivers of poverty reduction in China, but the trickle-down effect of economic growth isdiminishing and marketization is having a lesser pro-poor effect. Public expenditure hasfailed to provide social protection and income redistribution benefits due to issues such astargeting error and elite capture. Increasing the efficiency of the poverty reduction systemcalls for adaptive adjustments. Finally, this study highlights China’s poverty reductionexperiences and analyzes current challenges, which serve as inspiration for consolidatingpoverty-reduction achievements, combating relative poverty, and attaining countrysidevitalization.

Keywords: Poverty reduction governance, measurement of effects, countryside

JEL Classification Code: H50, I32, O15

DOI: 10.19602/j.chinaeconomist.2024.01.07