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Community-based Development and Poverty Alleviation: An Evaluation of China’s Poor Village Investment Program

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  • Park, Albert
  • Wang, Sangui

Abstract

We conduct the first systematic evaluation of the world’s largest community-based development program--China’s flagship poverty alleviation program began in 2001 which finances public investments in designated poor villages based on participatory village planning. We use matching methods and a panel household and village data set with national coverage to compare changes from 2001 to 2004 in designated poor villages that began plan investments and in designated poor villages that had yet to begin plan investments. We find that the program significantly increased both government- and village-financed investments. While the program did not increase the income or consumption of poorer households, it did increase the income and consumption of richer households by 6.1 to 9.2 percent. We also find suggestive evidence that governance matters in the distribution of program benefits. Relative gains were greater for richer households in villages with more educated leaders, and higher quality village committees delivered greater benefits to both richer and poorer households.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7856.

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Date of creation: Jun 2010
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Handle: RePEc:cpr:ceprdp:7856

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Keywords: China; governance; investment; poverty;

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Citations

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Cited by:
  1. James Alm & Yongzheng Liu, 2014. "China's Tax-for-Fee Reform and Village Inequality," Oxford Development Studies, Taylor & Francis Journals, vol. 42(1), pages 38-64, March.
  2. Pan, Lei & Christiaensen, Luc, 2011. "Who is vouching for the input voucher ? decentralized targeting and elite capture in Tanzania," Policy Research Working Paper Series 5651, The World Bank.
  3. Mano, Yukichi & Suzuki, Aya, 2013. "Industrial Development through Takeovers and Exits: the Case of the Cut Flower Exporters in Ethiopia," Discussion Papers 2013-05, Graduate School of Economics, Hitotsubashi University.
  4. Schüring, Esther, 2014. "Preferences for Community-based Targeting - Field Experimental Evidence from Zambia," World Development, Elsevier, vol. 54(C), pages 360-373.
  5. Kurosaki, Takashi & Khan, Hidayat Ullah, 2014. "Community-Based Development and Aggregate Shocks in Developing Countries: The Experience of an NGO in Pakistan," PRIMCED Discussion Paper Series 54, Institute of Economic Research, Hitotsubashi University.
  6. Chyi, Hau & Zhou, Bo, 2014. "The effects of tuition reforms on school enrollment in rural China," Economics of Education Review, Elsevier, vol. 38(C), pages 104-123.

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