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Are Place-Based Policies Always a Blessing? Evidence from China’s National Poor County Programme

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  • Chang Liu
  • Guangrong Ma

Abstract

In this paper, we evaluate the effects of a large-scale and continuing place-based policy in China. In 1994, the Chinese central government designated 592 counties as National Poor Counties (NPC), which have been receiving preferential treatment in several aspects. Our identification strategy exploits a discontinuous criterion for determining a county’s eligibility of the programme. We find that the NPC programme failed to foster local economic growth. Further investigation suggests that local capture is partly responsible for this failure. Our findings yield important policy implications that, in countries with limited local accountability, place-based policies characterised by decentralised implementation are not always a blessing.

Suggested Citation

  • Chang Liu & Guangrong Ma, 2019. "Are Place-Based Policies Always a Blessing? Evidence from China’s National Poor County Programme," Journal of Development Studies, Taylor & Francis Journals, vol. 55(7), pages 1603-1615, July.
  • Handle: RePEc:taf:jdevst:v:55:y:2019:i:7:p:1603-1615
    DOI: 10.1080/00220388.2018.1438598
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    Cited by:

    1. Lu, Hongyou & Liu, Min & Song, Wenjing, 2022. "Place-based policies, government intervention, and regional innovation: Evidence from China's Resource-Exhausted City program," Resources Policy, Elsevier, vol. 75(C).
    2. Chen, Qianmiao & Huang, Qingyang & Liu, Chang & Wang, Peng, 2022. "Career incentives of local leaders and crisis response: A case study of COVID-19 lockdowns in China," European Journal of Political Economy, Elsevier, vol. 75(C).

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