Research On The Impact Of Targeted Poverty Alleviation Policies On Economic Behavior Of Rural Families

Getting rid of poverty is a major event in the country and the country in ancient and modern times.Eliminating poverty,improving people’s livelihood,and realizing common prosperity are the essential requirements of socialism with Chinese characteristics and an important mission of the Communist Party of China.Since the 18 th National Congress of the Communist Party of China,General Secretary Xi Jinping has repeatedly emphasized poverty alleviation at important meetings,important timings,and major occasions,raised major theoretical and practical issues of socialist poverty alleviation with Chinese characteristics in the new era,and clearly put forward the important ideas of targeted poverty alleviation.Provide fundamental follow and action guidelines for our country to win the fight against poverty.In the cause of global poverty reduction,the design of targeted poverty alleviation policies embodies China’s wisdom,policy implementation contributes to China’s plans,and implementation results reflect China’s speed.Based on China’s household financial survey data,this article examines the impact of targeted poverty alleviation policies on poor families from three aspects: household credit,poverty vulnerability,and consumption.The main research conclusions are as follows:Firstly,It shows that the TPA policy increased the probability of poor households obtaining formal agricultural credit by 1.93%,and the scale of formal credit by 20.43%.This effect has been continuously enhanced with time.In the third year after the implementation of the TPA,the probability of formal credit for poor households increased by 3.45% and the scale of formal credit increased by 34.4%.Meanwhile,the probability of obtaining informal credit decreased by 4.08%,and the scale decreased by 33.34%,which implied that the complementary role of informal finance to formal finance has been weakened.This research finds that TPA has a greater impact on the western region and plays an important role in promoting coordinated regional development.Compared with nationally designated poor counties,the effect of formal credit increase is more significant in non-poverty counties,reflecting the idea of ―regional integration first,precise breakthrough second‖ in the process of eliminating poverty.Our study also finds there is no significant evidence of ―elite capture effect‖.However,the formal credit acquisition of extremely poor households has not changed significantly.Therefore,TPA has achieved remarkable results in establishing and improving the rural credit market,but formal finance services for the extremely poor households still need to be further improved.Secondly,this paper founds that the TPA policy increased per capita consumption of poor households by 4.79%,subsistence consumption by 6.05%,and development consumption by14.23%.When analyzing the kinds of consumption,we find that the policy has significantly increased the expenditure on food,clothing,housing,life services,transportation and communication,education and entertainment.At the same time,the proportion of the expenditure on housing,transportation and communication in the total consumption has been significantly increased,and the proportion of the expenditure on medical care has been significantly reduced.Furthermore,for poor elderly families,the TPA policy uses direct transfer payments to increase consumption levels and optimize the consumption structure;for families that are poor due to illness,the policy uses direct transfer payments such as subsistence allowances to reduce medical expenditures and improve living standards;For families who are poor due to their studies,the policy uses education assistance to ease the burden of education and improve the quality of life.For families with low levels of education,the policy encourages poor families to live a better life through a combination of "supporting aspirations and supporting the wisdom".The empirical results of this article show that the TPA policy has played the role of "prescribe the right medicine and targeted treatment".Thirdly,using the world Bank’s per capita daily consumption of $1.90 and $3.1 as the basis for setting the absolute and relative poverty lines,this paper examines the effect of targeted poverty alleviation on the vulnerability of rural households to poverty.This paper finds that targeted poverty alleviation policies reduce the proportion of extremely vulnerable farmers by 2.06%,the proportion of severely poor and vulnerable farmers by 4.20%,and the proportion of moderately vulnerable farmers by 3.87%.The research results show that the targeted poverty alleviation policy is effective in reducing the vulnerability of rural households to poverty,and greatly reduces the probability of poor households returning to poverty in the future.Furthermore,this paper finds that targeted poverty alleviation policies affect poverty vulnerability mainly through two channels.On the one hand,poverty vulnerability can be reduced by encouraging farmers to increase their endogenous power.Thanks to the targeted poverty alleviation policy,the proportion of poor families working,farming and employment increased by 1.49 percent,1.87 percent and 2.34 percent respectively.The number of working people in poor families increased by 0.05,the number of employed people increased by 0.04,the wage income of poor families increased by 23.65%,and the total agricultural output value increased by 30.73%,indicating that the policy has greatly improved the ability of poor families to develop themselves.On the other hand,poverty vulnerability can be reduced by improving the level of social security for poor households.As a result of the policy,the participation rate of the old-age insurance for poor households increased by 1.87 percent.Finally,heterogeneity test illustrates that TPA policies play a more significant role in contiguous areas with extreme poverty,ethnic minority areas,and "three regions and three states",reflecting China’s outstanding achievements in solving regional poverty problems.In addition,through the analysis of families with different characteristics,this paper finds that targeted poverty alleviation policies have more significant effects on families with a large number of elderly population and families with heavy medical burden.The research results of this paper provide direct evidence for the evaluation of targeted poverty alleviation policies,and can provide policy reference for addressing relative poverty after comprehensive poverty alleviation.