Poverty Reduction Policies And Rural-Urban Income Disparities

Since the 18th national congress of the communist party of China(CPC),the CPC central committee has attached great importance to poverty alleviation.At the 19th national congress of the communist party of China(CPC)in 2017,winning the battle against poverty was one of the three major battles that must be overcome to complete the building of a moderately prosperous society in all respects.In order to win the battle against poverty,the CPC central committee has implemented a series of measures to alleviate poverty,including "cadres going to the countryside,targeted poverty alleviation,and industrial assistance",which has achieved remarkable results.By 2017,the poverty rate had dropped from 10.2%in 2012 to 3.1%,and the number of poverty-stricken counties had been reduced for the first time.In 2017,125 poverty-stricken counties in 20 provinces and municipalities across the country applied to remove their caps and passed the poverty alleviation inspection.Over the past two years,153 poverty-stricken counties have been lifted out of poverty.Under the new situation and background,poverty alleviation also faces new challenges.New ideas and methods need to be explored constantly.The establishment of poverty alleviation reform experimental zone is a major reform and innovation of poverty alleviation and development in the eastern region,which can provide empirical evidence for the next step of poverty alleviation and development,so as to improve China's poverty alleviation and development capacity as a whole.With poverty alleviation and development entering a critical period,the income gap under the urban-rural dual structure has become the focus of a new round of poverty alleviation work.In this paper,the causal effect of poverty alleviation policies on urban-rural income gap is evaluated by using the dual difference model.The study found that(1)the poverty reduction effect generated by the establishment of pilot poverty alleviation reform zones significantly increased residents' income and promoted the convergence of urban and rural incomes.This conclusion is still valid in a series of identification hypothesis tests and robustness tests.(2)Heterogeneity analysis found that both the increase of fiscal transfer payment and the improvement of marketization level would have a positive effect on the poverty reduction effect of poverty alleviation policies,but unfortunately,fiscal decentralization and the improvement of innovation level did not reach the expected goal of narrowing the urban-rural income gap.(3)The formation mechanism of poverty reduction effect is based on the improvement of total factor productivity and urbanization level.On this basis,new economic vitality can be stimulated through technology selection effect and economic agglomeration effect to promote urban-rural integrated development.(4)The quantile processing effect model shows that the heterogeneity of income level and urban-rural income gap will lead to stratification effect of policy effect.The income effect of policy gradually decreases with the increase of residents' income level,while the poverty reduction effect shows an inverted u-shaped trend of first rising and then falling with the increase of urban-rural income gap.This study can provide strong empirical evidence for the effect of poverty reduction and transmission mechanism of poverty alleviation reform pilot areas,so as to provide reference for the continuous improvement of China's poverty alleviation and development system and the integrated development of urban and rural areas.Compared with the existing research results,the marginal contribution of this paper is mainly reflected in the following three points:first,this paper USES the DDS model to test the poverty reduction effect and income effect established in the poverty alleviation reform pilot area from a global perspective,providing empirical basis and theoretical guidance for the promotion and improvement of the poverty alleviation reform pilot area;Secondly,this paper examines the mechanism by which the experimental area influences the income gap between urban and rural areas through urbanization mechanism and total factor productivity promotion mechanism,providing empirical evidence for industrial transformation and upgrading in poor areas and improving the level of urbanization.Finally,this paper adopts the quantile processing effect model to study the stratified impact of policy effects at different income levels,focusing on the dynamic track of the impact of poverty alleviation policies on the income gap between urban and rural areas.As a major measure to promote the integration of urban and rural areas and promote the coordinated development of regions,the pilot poverty alleviation reform zone has important theoretical and practical significance.However,few scholars at home and abroad have discussed the policy effect of the establishment of poverty alleviation reform pilot zones.This paper makes up for the deficiency in this aspect.The research in this paper will be helpful for the statistical research and scientific evaluation of the policy effect and influence mechanism of the poverty alleviation reform pilot zone,and the examination and analysis of the economic poverty reduction effect and indirect transmission mechanism caused by the policy.It provides the basis and reference for the further promotion of policy and provides the theoretical and empirical basis for the exploration of new poverty alleviation and development policy mode in the new period.