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The implementation of China’s poverty alleviation policies has enhanced the diversity of the industrial structure

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  • Liu, Jingtong
  • Zhou, Dingyang
  • Jiang, Guanghui

Abstract

This paper evaluates the impact of China’s poverty alleviation policy (CPAP) on the evolution of the industrial structure in poverty-stricken counties, focusing on diversification dynamics and the mechanisms of path dependence and path creation. Using a panel dataset of 2099 counties from 2010 to 2020, we construct an industrial classification framework and measure diversification through the equilibrium index. The results indicate that industrial diversification in poverty-stricken counties is significantly lower than that in non-poverty-stricken counties. However, CPAP implementation led to a 2–3% increase in diversification, with stronger effects in deeply poverty-stricken counties and a three-year policy lag. These findings suggest that CPAP can promote regional resilience by shifting development trajectories from path dependence to path creation. This study contributes to evolutionary economic geography by demonstrating how state-led policies can initiate structural transformation in regions with limited endogenous capabilities. It also highlights the importance of policy designs that increase local innovation capacity to sustain industrial diversification.

Suggested Citation

  • Liu, Jingtong & Zhou, Dingyang & Jiang, Guanghui, 2025. "The implementation of China’s poverty alleviation policies has enhanced the diversity of the industrial structure," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 446-462.
    • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:446-462
    DOI: 10.1016/j.eap.2025.06.013
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