Poverty Reduction Effect Of Public Transfer Payment In Rural China

Under the background of the implementation of Targeted Poverty Alleviation strategy and Rural Revitalization strategy and “the change of major contradictions in Chinese society,Chinese farmers' poverty has attracted wide attention from government departments and academia.Central Committee of the Communist Party of China decided that in 2020,all poor groups will get out of poverty and a well-off society will be built comprehensively.This is not only the commitment of Central Committee of the Communist Party of China to the people's poverty alleviation,but also the oath of history.General Secretary Xi Jinping pointed out at the conference on poverty alleviation and targeted poverty alleviation: “Promise must be kept and action must be resolute.The rural poor population getting out of poverty on schedule,all poor counties getting rid of poverty,and resolving regional overall poverty are the basic task of building a well-off society comprehensively as well as our solemn commitment.” To achieve poverty alleviation and prosperity for the poor,Chinese government has incorporated poverty alleviation and development into the top-level design of China's economic and social development.At present,many public transfer payment policies for farmers have been implemented in China,such as new rural social pension insurance,new rural cooperative medical system,rural subsistence security system and agriculture and forestry subsidy system.Theoretically,public transfer payment is an important income distribution mechanism,and it is the safety net and shock absorb for social operation,which has a positive effect on national welfare.Better-targeted rural public transfer payment can not only buffer inequality,but also increase farmers' income and alleviate poverty.However,on the practical level,China's rural public transfer payment still has some problems,such as narrow coverage and insufficient funds.Its poverty reduction effect is controversial.Even on many levels,there is a reverse redistribution of wealth,resulting in more inequity.Therefore,re-examining the poverty reduction effect of rural public transfer payment in China remains a major problem on the realistic level.Based on the data of China Family Panel Studies and the reality of China,this paper studies the impact of rural public transfer payment on farmers' poverty and analyzes its poverty reduction effect.Due to the diversity of rural public transfer payment projects and farmers' poverty dimensions,this paper analyzes therelationship between different public transfer payment projects and different poverty dimensions,so as to evaluate the poverty reduction effect of rural public transfer payment in China more comprehensively,objectively and scientifically.At the same time,the instrumental variable method and the propensity score matching method are used to overcome endogenous problem and sample selection bias problem to capture the net effect of rural public transfer payment on poverty reduction.Furthermore,this paper analyzes the mechanism of rural public transfer payment on the macro and micro level,and provides enlightenment and reference for China getting rid of poverty trap and development imbalance trap,solving the social contradiction of imbalanced and insufficient development” and implementing Rural Revitalization.The main conclusions of this paper can be summarized as follows: Firstly,from the perspective of poverty incidence,poverty depth and poverty intensity,it is found that no matter what kind of indicators is used to measure farmers' poverty,rural public transfer payment has a positive effect on poverty reduction.With the increase of the poverty line,after the implementation of rural public transfer payment policy,the poverty incidence,poverty depth and poverty intensity of farmers decrease in varying degrees.With the advancement of the survey time,no matter which type of poverty standard is adopted,the poverty incidence,poverty depth and poverty intensity of farmers increase.At the same time,the poverty reduction effect of different rural public transfer payment projects is different,and the poverty reduction effect of rural public transfer payment on different regions and different farmers is also different.Secondly,from the perspective of the multidimensional poverty,it's found that whatever the threshold of multidimensional poverty,rural public transfer payment negatively affects farmers' multidimensional poverty,the social assistance fund has the greatest negative impact on farmers' multidimensional poverty.In terms of poverty reduction effect,when the multidimensional poverty threshold is 40%,35%and 30% respectively,farmers who don't receive rural public transfer payment are about 0.025,0.159 and 0.158 more likely to fall into multidimensional poverty than those who receive public transfer payment.With the increase of multidimensional poverty standard,the poverty reduction effect of different public transfer payment projects is more and more great.Especially,the agricultural and forestry subsidy has the greatest effect on reducing farmers' multidimensional poverty.Thirdly,from the perspective of poverty vulnerability,it is found that compared with farmers who do not receive public transfer payment,poverty vulnerability offarmers who receive public transfer payment is lower,and medical reimbursement has the greatest positive impact on farmers' poverty vulnerability.In terms of poverty reduction effect,the poverty vulnerability of public transfer payment group decreases by about 13.87% from 2010 to 2014,while the poverty vulnerability of the non-public transfer payment group decreases by around 12.23%.Viewed from the different forms of poverty,whether it is persistent poverty or temporary poverty,poverty vulnerability declines less in the non-public transfer payment group than in the public transfer payment group.At the same time,comparing the poverty vulnerability reduction effect of different public transfer payment projects,it is found that the social assistance fund has the greatest effect.Finally,China's rural public transfer payment plays a role in poverty reduction mainly through the following two channels.On one hand,at the macro level,public transfer payment has the redistribution effect,which can not only reduce inter-provincial income inequality,but also reduce income inequality within provinces and among households.Then,it can improve farmers' access to public resources and share the achievements of reform and opening up.On the other hand,at the micro level,public transfer payment can improve farmers' income status.Then,it can increase farmers' investment in human capital,social capital and material capital,and improve their human capital capability,expand their social capital network,as well as enhance the accumulation of material capital.The benign interaction of “three capitals” will improve farmers' self-development ability and help farmers get rid of poverty trap.Based on the research findings,it can start from the following four points to solve rural poverty problems and make rural public transfer payment play a sustainable role in poverty reduction.Firstly,expanding channels for poverty reduction,implementing a number of measures,and improving the poverty reduction mechanism for poor farmers.Secondly,expanding the scope of assistance,covering relative poverty,and adapting to the changes in the main structure of poor farmers.Thirdly,ensuring the source of funds,paying attention to basic security,and meeting the basic living needs of poor farmers.In the end,the systems should coordinate organically,the relevant systems should cooperate,and various transfer payment systems should develop together.