scholarly journals Poverty reduction in rural China: Does the digital finance matter?

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0261214
Author(s):  
Boou Chen ◽  
Chunkai Zhao
Keyword(s):  
Rural Areas ◽  
Poverty Reduction ◽  
Rural China ◽  
Rural Households ◽  
Research Field ◽  
Absolute Poverty ◽  
Financial Policies ◽  
Variable Approach ◽  
Reduction Effect ◽  
Financial Technology

As digital finance is widely spread and applied in China, this new format of financial technology could become a new way to reduce poverty in rural areas. By matching digital financial indexes of the prefectural-level cities with microdata on rural households from the China Household Finance Survey (CHFS) in 2017, we find that digital finance significantly suppresses absolute poverty and relative poverty among rural households in China, which is supported by a series of robustness tests, such as the instrumental variable approach, using alternative specifications, and excluding extreme observations. Additionally, we provide evidence that the poverty reduction effect of digital finance is likely to be explained by alleviating credit constraints and information constraints, broadening social networks, and promoting entrepreneurship. Our findings further complement the research field on financial poverty reduction and offer insights for the development of public financial policies of poverty reduction in other countries, especially in some developing countries.

Tourism, Institutions, and Poverty Alleviation: Empirical Evidence from China

2020 ◽  
pp. 004728752094779
Author(s):  
Lei Zhao
Keyword(s):  
Method Of Moments ◽  
Poverty Reduction ◽  
Rural China ◽  
Generalized Method Of Moments ◽  
Tourism Development ◽  
Institutional Setting ◽  
Absolute Poverty ◽  
Negative Effects ◽  
Long Run

While tourism can be advocated as a means for poverty reduction, the inconclusive issue of poverty in developing countries has harbored doubts about the efficacy of tourism development in its reduction. This study empirically examines whether institutions influence how tourism development affects poverty. We apply the system generalized method of moments technique to estimate our empirical model. By using panel data for 29 Chinese provinces over the period 1999 to 2014, we empirically reveal that tourism and institutions have significant and negative effects not only on the absolute poverty but also on the relative poverty as measured by the Foster–Greer–Thorbecke (FGT) poverty indices in both the short and long run albeit at varying magnitudes of effect and levels of significance. In addition, institutional quality positively moderates the tourism–poverty nexus, thereby suggesting that the pro-poor effect of tourism development decreases as the quality of institutions improves in the thin institutional setting of rural China.

Land and poverty: the role of soil fertility and vegetation quality in poverty reduction

2020 ◽  
Vol 25 (4) ◽  
pp. 315-333
Author(s):  
Martin Philipp Heger ◽  
Gregor Zens ◽  
Mook Bangalore
Keyword(s):  
Soil Fertility ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Past Research ◽  
Sub Saharan Africa ◽  
Vegetation Growth ◽  
Variable Approach ◽  
Quasi Experimental ◽  
Sub Saharan ◽  
Negative Impacts

AbstractThe debate on the land–poverty nexus is inconclusive, with past research unable to identify the causal dynamics. We use a unique global panel dataset that links survey and census derived poverty data with measures of land ecosystems at the subnational level. Rainfall is used to overcome the endogeneity in the land–poverty relationship in an instrumental variable approach. This is the first global study using quasi-experimental methods to uncover the degree to which land improvements matter for poverty reduction. We draw three main conclusions. First, land improvements are important for poverty reduction in rural areas and particularly so for Sub-Saharan Africa. Second, land improvements are pro-poor: poorer areas see larger poverty alleviation effects due to improvements in land. Finally, irrigation plays a major role in breaking the link between bad weather and negative impacts on the poor through reduced vegetation growth and soil fertility.

An Overview of Agriculture Development Programs for Poverty Reduction in Rural Areas

2021 ◽  
pp. 255-269
Author(s):  
Muhamad Rusliyadi ◽  
Wang Libin
Keyword(s):  
Rural Areas ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Rural China ◽  
Strategy Development ◽  
Development Programs ◽  
Level Of Evidence ◽  
Integrated Rural Development

The purpose of this chapter is to provide an overview description of important differences in agricultural development China and Indonesia in poverty reduction efforts in rural areas and some strategy. This chapter hopes to provide an objective picture of the development from agricultural sector level of evidence both Indonesia and China. China and Indonesia are agriculture-based countries with a program of integrated rural development as a whole to be a target of poverty reduction programs. Several farm programs related to poverty alleviation have been launched and had a good impact or significance, especially in China that is able to reduce extreme poverty from 30% in 1978 to less than 3% in 2008. Certainly many lessons can be obtained from this success, especially the concept and strategy development in rural China to be a reference of other states in its development model, especially for poverty alleviation programs.

POVERTY REDUCTION IN CHINA AND INDIA: A COMPARATIVE STUDY

2020 ◽  
Vol 65 (supp01) ◽  
pp. 95-115
Author(s):  
TONGJIN ZHANG ◽  
YUAN ZHANG ◽  
GUANGHUA WAN ◽  
HAITAO WU
Keyword(s):  
Comparative Study ◽  
Development Strategy ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Rural China ◽  
Agricultural Labor ◽  
China And India ◽  
Employment Generation ◽  
The Comparative Study ◽  
Better Than

This paper attempts to explain why China performed better than India in reducing poverty. As two of the most populous countries in the world, China and India have both experienced fast economic growth and high inequality in the past four decades. Conversely, China adopted a more export-oriented development strategy, resulting in faster industrialization or urbanization and deeper globalization, than India. Consequently, to conduct the comparative study, we first decompose poverty changes into a growth and an inequality components, assessing the relative importance of growth versus distributional changes on poverty in China and India. Then, Chinese data are used to estimate the impacts of industrialization, urbanization and globalization on poverty reduction in rural China. The major conclusion of this comparative study is that developing countries must prioritize employment generation in secondary and tertiary industries through industrialization and globalization in order to absorb surplus agricultural labor, helping reduce poverty in the rural areas.

scholarly journals Agriculture Development Programs for Poverty Reduction Evidences from Indonesia and China - Comparative Study Case

2018 ◽  
Vol 8 (2) ◽  
pp. 104-118
Author(s):  
Muhamad Rusliyadi ◽  
Wang Libin
Keyword(s):  
Rural Areas ◽  
Poverty Reduction ◽  
Agricultural Sector ◽  
Rural China ◽  
Strategy Development ◽  
Development Programs ◽  
Level Of Evidence ◽  
Integrated Rural Development ◽  
Agriculture Programs ◽  
Agriculture Development

The purpose of this paper is to provide an overview description of important differences in agriculture development China and Indonesia in poverty reduction efforts in rural areas and some strategy. Obviously with the view of some of the existing literature by presenting data and facts or opinions with the collaboration of several institutions associated with the topic. This paper will provide an objective picture of the development from agricultural sector level of evidence both Indonesia and China. China and Indonesia is agriculture based country with a program of integrated rural development as a whole to be a target of poverty reduction programs. Several agriculture programs related to poverty reduction has been launched and have a good impact or significance, especially in China that is able to reduce extreme poverty from 30% in 1978 to less than 3% in 2008. Certainly many lessons can be obtained from this success, especially the concept and strategy development in rural China to be a reference of other States in its development model, especially for poverty alleviation programs.

scholarly journals Why the Uncertain Term Occurs in the Farmland Lease Market: Evidence from Rural China

2018 ◽  
Vol 10 (8) ◽  
pp. 2813 ◽  
Author(s):  
Baoling Zou ◽  
Biliang Luo
Keyword(s):  
Rural Areas ◽  
Rural China ◽  
Rural Households ◽  
Agricultural Labor ◽  
Land Loss ◽  
Pension Insurance ◽  
Agricultural Insurance ◽  
Agricultural Income ◽  
Informal Contracts ◽  
Low Efficiency

Urbanization and aging of the agricultural population lead to the insufficient supply of agricultural labor and land being idle in rural China, calling for the farmland lease market to maintain sustainable and efficient use of farmland. However, rural households tend to agree on an uncertain term for farmland leasing in/out, which leads to low efficiency and land loss in agriculture. Therefore, using the survey data collected from 2704 rural households and a logistic regression model, we examine the effects of risk faced by the rural households on the likelihood of the uncertain term for farmland leasing. Results reveal that a large share of labor with low education and high income increase the likelihood of an uncertain term for farmland leasing out activities, while a high disaster frequency, a high education of household and a high share of agricultural income increase the probability of an uncertain term for farmland leasing in activities. Additionally, leasing farmland to/from relatives or neighbors, informal contracts, low rent and the lack of pension insurance also increase the likelihood of the uncertain term for farmland leasing out/in activities. Findings suggest that more attention should be paid to education, agricultural insurance and social security system in rural areas.

Digital financial inclusion and vulnerability to poverty: evidence from Chinese rural households

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiuhua Wang ◽  
Yang Fu
Keyword(s):  
Poverty Reduction ◽  
Large Scale ◽  
Labour Force ◽  
Rural China ◽  
Rural Households ◽  
Household Survey ◽  
Financial Inclusion ◽  
Mediation Effect ◽  
Content Type ◽  
Vulnerability To Poverty

PurposeDigital finance has the transformative power to realise financial inclusion. However, evidence on the relationship between digital finance and poverty reduction remains limited. This study examines the mitigating effects of digital financial inclusion (DFI) on vulnerability to poverty in rural China, explores potential mechanisms at the micro-level, and investigates the external conditions for DFI to validate these effects.Design/methodology/approachRural household data from the China Labour Force Dynamics Survey and the regional DFI index compiled by Peking University are used. The probit and mediation effect models are employed to assess the impacts of the DFI on vulnerability to poverty and explore its mechanisms, with an appropriate instrumental variable to mitigate potential endogeneity.FindingsDFI can mitigate vulnerability to poverty in Chinese rural households. Specifically, both sub-indices – coverage breadth and depth of use – have a significant effect. Further analyses based on the mediation model show that improving agricultural productivity, stimulating entrepreneurial activities and promoting non-agricultural employment are the core mechanisms for alleviating poverty vulnerability. Heterogeneity analysis shows that DFI is pro-poor and benefits those who lack economic opportunities. Moreover, adequate endowment in rural households, such as production and human capital, is an external condition for digital finance to mitigate vulnerability to poverty.Originality/valueThis study is among the first to examine the vulnerability-mitigation effects from the perspective of digital finance development, relying on data from a large-scale, nationwide household survey and the regional DFI index. It also checks for the mechanisms and heterogeneity of the effects, which prove the effects can help balance efficiency and equity.

The impact of trade liberalization on poverty reduction in rural China

2018 ◽  
Vol 10 (4) ◽  
pp. 683-694
Author(s):  
Jun Wang ◽  
Yong Hu
Keyword(s):  
Trade Liberalization ◽  
Survey Data ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Rural China ◽  
Rural Poverty ◽  
Probit Model ◽  
Poverty Line ◽  
Content Type ◽  
The Impact

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.

scholarly journals Analysis of the Poverty Reduction Effect of Medical Security on Poverty Caused by Illness of the Middle-aged and Elderly Poor People in Rural China

2021 ◽  
Author(s):  
Li Liu ◽  
Jing Deng ◽  
Xue YU ◽  
Ailing CHEN ◽  
Rui LIU ◽  
...  
Keyword(s):  
Poverty Reduction ◽  
Rural China ◽  
Security Policies ◽  
Poor People ◽  
Chinese Government ◽  
Eastern Region ◽  
Middle Aged ◽  
Positive Role ◽  
Medical Security ◽  
Reduction Effect

Abstract Background The Chinese government has adopted a series of medical security policies to reduce health poverty. This study analyzes the poverty caused by illness (PCI) of the middle-aged and elderly poor population (MAEPP) in rural China, and simulates the poverty reduction effect (PRE) of medical security on medical expenses. Methods The FGT index is used to measure the PCI of the MAEPP in eastern, central, and western regions of China before and after medical security compensation, and further simulate the PRE of medical security under different compensation ratios. Results The rural MAEPP in the eastern, central and western regions have different levels of PCI. The eastern region is higher than that in the central and western regions; the expenditure-based poverty caused by outpatient expenses is higher than the cost of hospitalization and self-treatment, and the self-treatment burden of the poor is large; The higher the compensation rate of medical security, the better the effect of poverty reduction. Conclusions Medical security has played a positive role in improving poverty. The PRE of medical security policies in different regions are different, and outpatient compensation in medical security has a better effect on poverty reduction.

scholarly journals Does Beneficiaries’ Satisfaction Enhance Their Trust in State Grid for Solar PV Adoption? – An Evidence From PAPs in Rural China

2021 ◽  
Author(s):  
Liping Ding ◽  
Yin Shi ◽  
Qiyao Dai ◽  
Zumeng Zhang ◽  
Jiaxin Li ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Rural Areas ◽  
Structural Equation ◽  
Poverty Reduction ◽  
Negative Impact ◽  
Rural China ◽  
Rural Poverty ◽  
Equation Model ◽  
Solar Pv ◽  
Factors Affecting

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.

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