The impact of trade liberalization on poverty reduction in rural China

2018 ◽  
Vol 10 (4) ◽  
pp. 683-694
Author(s):  
Jun Wang ◽  
Yong Hu

PurposeThe purpose of this paper is to investigate how trade liberalization influences rural poverty reduction in China.Design/methodology/approachThe authors make use of China Family Panel Studies survey data, take annual income of farmers of RMB2,300 and RMB3,450 as the poverty lines (poverty line 1 and poverty line 2, respectively). Residents below poverty line 1 and poverty line 2 are 2,580 and 2,661, respectively. Probit model is used to estimate the impact of trade liberalization on the poverty probability. Income-deciding equation is used to estimate the impact of trade liberalization on the income level of poor residents in rural areas. Income-deciding equation is also used to examine the transmission mechanism of trade liberalization affecting rural poverty.FindingsThis study finds that trade liberalization can reduce the poverty probability of rural residents and promote the income growth of poor residents in rural areas. Trade liberalization increases the income of poor residents and reduces poverty through transmission mechanisms such as promoting economic growth and financial expenditure.Originality/valueTo the authors’ knowledge, this is the first empirical study to quantitatively model the impact of trade liberalization on rural poverty reduction in China using residents’ survey data.

2021 ◽  
pp. 58-60
Author(s):  
T. Indumathi ◽  
G. Savaraiah

The World Bank's Andhra Pradesh Rural Poverty Reduction Project supports the self helf groups of the women members. It promotes women's social, economic, legal and political empowerment to reduce poverty among the poor and the poorest of the poor. The important object of this article is to examine the impact of micronance on the socio economic empowerment of the rural women supported by the national reputed NGO- Rashtriya Seva Samithi (RASS). 184 women members of the SHGs promoted by Rasthriya Seva Samathi (RASS) an NGO which located in Tirupati town. 184 samples are selected randomly from 15 SHGs scattered throughout the Tirupati rural mandal (Taluk) from the area of the study have been considered to conduct the present research study. The study reveals that 87.71 percent of the sample women were below the poverty line before joining the SHGs. As a result of SHG, about 40 percent of the sample women crossed the poverty line. The highest intensive value indicates that more women have participated in social agitations for the welfare of the children and the society. The second highest intensity reveals that considerable numbers of women of SHGs have participated in the government sponsored schemes. The 1st point secured 3rd rank with total intensity value of 605 which status that the micro credit has resulted in increased social status and empowerment.


2017 ◽  
Vol 9 (2) ◽  
pp. 255-269
Author(s):  
Ai Yue ◽  
Yaojiang Shi ◽  
Renfu Luo ◽  
Linxiu Zhang ◽  
Natalie Johnson ◽  
...  

Purpose Although access to safe drinking water is one of the most important health-related infrastructure programs in the world, drinking water remains a large problem in China today, especially in rural areas. Despite increased government investment in water resource protection and management, there is still an absence of academic studies that are able to document what path the investment has taken and whether it has had any tangible impact. The purpose of this paper is to analyze the impact of drinking water investment on drinking water in China. Design/methodology/approach The authors make use of nationally representative data from 2005 and 2012 to measure the impact of drinking water investment among 2,028 rural households in 101 villages across five provinces. Both ordinary least squares regression and probit regression are used to analyze the correlates and the impact of drinking water investment. Findings The authors demonstrate that water quality was likely a significant problem in 2004 but that China’s investment into drinking water appears to have resulted in initial improvements during the study period. The authors show that the most significant change came about in terms of hardware: villages that received more drinking water investment now have more piped tap water and more access to water treatment infrastructure (disinfecting and filtering facilities). High rates of rural resident satisfaction with drinking water suggest the effects of drinking water investment are being felt at the village level. Originality/value To the authors’ knowledge, this is the first empirical study on drinking water investment over time in rural China using nationally representative data.


2015 ◽  
Vol 7 (2) ◽  
pp. 280-302 ◽  
Author(s):  
Yi Che ◽  
Yan Zhang ◽  
Linhui Yu

Purpose – The purpose of this paper is to examine key determinants of farm labor market development in rural China. Design/methodology/approach – Probit, Logit, and IV-Probit model are used to provide pertinent empirical analysis. Findings – Analysis of survey data establishes three facts about the farm labor market in rural China: first, households with high farm endowment are more likely to hire farm labor; second, because of the mismatch between farm ability and land size created by egalitarian land reallocation, households with more land reallocations are more likely to participate in farm labor market to adjust such mismatch; third, land rental market and farm labor market seem to be complementary. These results are robust to alternative model specifications, subsamples, alternative dependent variables, and additional controls. Welfare analysis demonstrates that the farm labor market is conducive to agricultural output. Originality/value – The main contribution of this study is to lay out stylized facts in terms of the development of farm labor market using a unique survey data set.


Author(s):  
Maretha Berlianantiya Muhammad Ridwan Eka Wardani

<p><em>Poverty often occurs in rural areas rather than urban areas, low education which results in low quality of human resources and lack of access is often the cause of rural poverty. In addition, most of the economies of rural communities rely solely on the traditional agricultural sector. Various poverty reduction policies have been implemented, including village fund policies. This study aims to examine the management of village funds in the Balong sub-district of Madiun Regency with a case study in the villages of Tatung and Karangmojo villages covering the management of village funds in Tatung village and Karangmojo village. Balong Subdistrict and the impact of empowerment in the villages of Tatung and Karangmojo, Balong District. This research was conducted in Balong Subdistrict, Ponorogo Regency with a Case study in Tatung Village and Karangmojo Village with qualitative methods. In the village of Tatung village funds are managed as tourist villages with a focus on Paragliding tourist rides. Whereas in Karangmojo village it is used for Bumdes in the form of Lovebird birds, providing Gapoktan assistance, and infrastructure development.</em></p>


2017 ◽  
Vol 9 (2) ◽  
pp. 238-254 ◽  
Author(s):  
Dong Zhou ◽  
Benqian Li

Purpose The purpose of this paper is to study a new pathway out of poverty for rural areas through cultivating non-farm employment: the new media utilization. Design/methodology/approach The authors utilize two waves of nationwide micro survey data in China, China General Social Survey 2005 and 2013, to investigate the impacts of new media coverage on non-farm employment and earnings in rural China with the ordered probit model and instrument variables. Findings The authors find that promotion of new media coverage can significantly enhance rural non-farm employment in China by 10-20 percent and ultimately increase earnings for rural residents. The findings provide new evidence for the new media as a potential newly emerging pathway out of poverty for rural areas. The conclusions are robust regarding a variety of controls and model specifications, evaluations with alternative measures, examinations within different subsamples, and estimations with constructed pseudo panels. Social implications Encouragement of new media coverage in rural China not only can improve the rural non-farm employment and living standards but also can contribute toward narrowing the differences between urban and rural areas, thereby balancing regional development. Originality/value It contributes to the existing literature through primarily empirically investigating the economic functions of new media in rural China.


Author(s):  
Azad Ali Khatyan ◽  
Prof. Dr. Muhammad Saleem Rahpoto ◽  
Dr. Ghulam Muhammad Mangnejo

Poverty is a chronic problem in Pakistan. More than 25 percent of the population is still living below the poverty line. In Pakistan, rural poverty is more than urban poverty. More than 65 percent of the population is living in rural areas. They depend on farming. The purpose of this study was to determine the variables for the more production of rice crops which will increase the income of farmers and it will reduce the poverty from the farmers. The study calculated the average household income of the farmers. The area of this study was District Larkana. A Stratified sample technique was used for the sample from the four Taluka, a sample size of 100 farmers were selected. The data were analyzed by using the cobb-Douglas production function in the log transform method. Demographic results showed that farmers are less educated. The family size was mostly large and they are experienced. The average incomes of the farmers were 53960. The results of the regression revealed that model data is valid with Cronbach's alpha 0.69. Adjusted R-square 0.91 shows good variation due to selected variables. The model is significant at 0.000 values. All variables plow, fertilizer, seed Pest, Labor, Education, and experiences have a positive impact on rice production which is important for farmers’ income.


2021 ◽  
Author(s):  
Liping Ding ◽  
Yin Shi ◽  
Qiyao Dai ◽  
Zumeng Zhang ◽  
Jiaxin Li ◽  
...  

Abstract Background: Photovoltaic Poverty Alleviation Projects (PPAPs) have been implemented in Chinese rural areas since 2014. As a new energy policy, PPAPs have played an important role in alleviating rural poverty. However, the adoption of solar PV faces multiple barriers from the perspective of beneficiaries. Therefore, this study basically aims to discuss and analyze factors affecting beneficiaries’ satisfaction and their trust in State Grid, promoting the adoption of solar PV. Methods: Based on the integrated American Customer Satisfaction Index (ACSI) and Unified Theory of Acception and Use of Technology (UTAUT) model, this study uses the Structural Equation Model (SEM) to reveal how the beneficiaries’ satisfaction enhance their trust in State Grid. The data were obtained from a survey of 928 PPAPs’ beneficiaries by stratified and random sampling in Chinese rural areas. Results: The results confirm that environmental perception in this study positively impacts on beneficiaries’ satisfaction. And perceived quality also has a positive effect on beneficiaries’ satisfaction and trust in State Grid, however, social influence has a negative impact on beneficiaries’ satisfaction; behavior expectation can directly promote beneficiaries’ satisfaction, while indirectly propel their trust in State Grid. Conclusions: This study constructs an integrated customer satisfaction model from the perspective of beneficiaries and proposes relevant measures to promote the adoption of solar PV that can be applied to poverty reduction of other developing countries worldwide.


Subject Poverty alleviation efforts in China. Significance Wiping out poverty by 2020 is among the Communist Party's top policy priorities. President Xi Jinping's government has granted massive funding to what has become China's strongest poverty-reduction campaign ever. The population below the poverty line in rural areas has fallen from 99 million in 2012 when Xi took office, to 30 million people by the end of his first term in 2017. Chinese success has attracted praise from international institutions and become a role model for developing countries such as Pakistan in their fight against poverty. Impacts Stricter monitoring will make poverty relief work more efficient and coincidentally extend Party control over local public institutions. Precise targeting of poor households will increase effectiveness, but may leave behind households just barely above the poverty line. Businesses will benefit from grants and investments given for undertaking poverty relief and development work. Rural populations resettled in urban areas may face greater precarity without farmland to fall back on.


Author(s):  
Mustafa Hassan Elsafi ◽  
Elsadig Musa Ahmed ◽  
Santhi Ramanathan

Purpose The purpose of this paper is to examine the impact of microfinance programs sponsored by Sudanese microfinance institutions (SMFIs) on monetary poverty reduction in Sudan where poverty is widely spread. Design/methodology/approach The study adopted the control group approach, where income and expenditure are taken as welfare indicators. The updated World Bank’s international poverty line of 1.90 per person per day was adopted to separate the poor from non-poor. The data were collected by the means of a questionnaire distributed to a random sample of beneficiaries in the institution under study. The study adapted the Foster, Greer and Thorbecke (FGT) model to evaluate the role of microfinance programs in poverty reduction. Furthermore, to gain more insight into the impact of the program, a preliminary analysis was conducted using the independent-samples t-test to examine the difference in the welfare indicators for the sample of the control group and treatment group as well as that of the small loan group and micro-loan group. Findings The findings show that the microfinance program provided by SMFIs has reduced the monetary poverty among the participants. The results also reveal that beneficiaries who had received a larger volume of loan were noted lesser poverty than those who had received very small loan size. Moreover, the results demonstrate that poverty indices based on expenditure as a welfare indicator are far lower than those based on income for both groups. Originality/value This study contributes to the available literature by filling the gaps through including income and expenditure as monetary variables, which included separately in previous studies adopted the FGT model in the area of microfinance, in addition to exploring the role of loan size in the effect of microfinance on poverty reduction.


Land ◽  
2020 ◽  
Vol 9 (10) ◽  
pp. 360 ◽  
Author(s):  
Xin Deng ◽  
Miao Zeng ◽  
Dingde Xu ◽  
Yanbin Qi

At a time when COVID-19 is sweeping the world, farmland abandonment is obviously not conducive to solving food security problems. Since the formal institutions of local government in China have not been effective in the reduction of farmland abandonment, this study aims to explore whether informal institutions can help mitigate this problem. Based on big survey data from 8031 farmer households in 27 provinces in mainland China, this study uses an econometric model to investigate the quantitative impact of social capital on farmland abandonment, and to analyze the channels through which that impact manifests itself. The empirical results point to the following conclusions: (i) Social capital, as a key informal institution, can help reduce farmland abandonment. More specifically, after controlling for other variables, for every unit increase in social capital, the proportion of farmland abandonment can be predicted to drop by 7.17 percentage points. (ii) Both off-farm employment and farmland rent are channels for the impact of social capital on farmland abandonment. However, social capital’s effect on increasing farmland abandonment via the promotion of off-farm employment is small when compared with its effect on reducing farmland abandonment via the promotion of farmland rent. This study’s conclusions may help generate new ideas for reducing farmland abandonment. At the same time, the study may provide a sound, empirical basis for policies aimed at reducing the negative impact of COVID-19 on food security while also revitalizing rural areas.


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