Study On The Poverty Reduction Effect Of Public Investment In Rural China

China's poverty problem is a hot topic that have been concerned by all sectors of society for a long time.Since the reform and opening,the number of poor people in rural areas has dropped from 250 million in 1978 to 16.6 million in 2018.The task of eliminating poverty has made remarkable achievements,The task of overcoming poverty has made remarkable achievements,which is mainly attributed to the substantial increase of the government's investment in agriculture and rural area,and rural public investment has played a important role in the process of reducing rural poverty.The Nineteenth National Congress of the Communist Party of China pointed out that “let the poor and poor areas enter a well-off society in an all-round way with the whole country”.We can see the dawn of victory for China's rural poor people to get rid of poverty.However,we must be conscious that China's rural economic development is still relatively backward,and the poverty situation of the poor people who have not yet been lifted out of poverty is more severe,and the difficulty of fighting against poverty is Bigger.As the main driving force of rural economic development,rural public investment has played an important role in the process of poverty alleviation in China.Reasonable direction and structure of rural public investment can effectively alleviate rural poverty.On the contrary,it may cause waste of public resources and increase of rural poor population.In addition,public investment could not directly reduce rural poverty,but through promoting the development of rural industries,improving the basic conditions of rural areas,improving the skills of the poor to promote the reduction of rural poverty.Therefore,a comprehensive understanding of the poverty reduction mechanism and direction of rural public investment is conducive to finding the correct direction of public investment and adjusting the rational structure of public investment,so as to better promote poverty alleviation in rural areas and achieve the goal of poverty alleviation in rural areas under the current standards in 2020.Based on the descriptive statistical analysis of the current situation of rural poverty and public investment in China,this paper finds that the number of public investment in rural areas in China is increasing from 2003 to 2017,but there is still a big gap compared with the average number of public investment in China,and the utilization efficiency of public investment in rural areas needs to be improved.In addition,through the analysis of the poverty reduction mechanism of rural public investment,this paper clarifies the poverty reduction path of rural public investment,and finds that there are obvious differences in the poverty reduction path of different types of public investment.Based on this,this paper selected 31 provinces(municipalities directly under the Central Government and autonomous regions)of China from 2003 to 2017 as the data of rural public investment and rural poverty rate,used fixed-effect model to empirical test panel data,used specific data to measure the poverty reduction effect of various public investment,compared the difference of poverty reduction effect of various public investment,and divided the whole country into eastern,central and Western regions.By comparison,the differences of poverty reduction effects of rural public investment in the three regions are analyzed.The final conclusions of this paper are as follows:(1)Public investment in rural areas has a significant impact on poverty alleviation in rural areas.Public investment in rural areas is an important force to promote poverty alleviation in rural areas.Public investment in rural areas can effectively alleviate rural poverty by improving rural production and living conditions,reducing the cost of production and living,and increasing the income of poor people.(2)Different types of public investment have different effects on alleviating rural poverty.From the national perspective,rural education investment has the most significant effect on alleviating rural poverty,followed by rural road investment,rural medical and health investment,rural electricity investment and rural water investment.(3)Different types of public investment have different mechanisms of poverty reduction.Rural infrastructure investment reduces rural poverty by reducing rural production and living costs and promoting agricultural growth;rural education investment reduces rural poverty by improving the knowledge,skills and cultural quality of the poor;rural Health care investments reduce rural poverty by improving the quality of life and health of the poor.(4)The effects of public investment in rural areas on poverty reduction are quite different in the east,central and Western regions.The poverty reduction effect of public investment in rural areas is most significant in western rural areas and in Central Rural areas,but relatively small in Eastern rural areas.