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Transfer-Based Decentralization and Poverty Alleviation

Evidence from a Quasi-Experiment in China

Bibliographic Data

ID6375651
AuthorsFubing Su (Vassar College), Ming Li (0000-0001-7109-5084, University of Pennsylvania), Ran Tao (0000-0002-4248-6067, Renmin University of China)
Year2019
Volume49
Issue4
Pages694-718
Publication date2019-09-01
Open AccessYes
TypeARTICLE
VenuePublius The Journal of Federalism (JOURNAL)
Journal identifiersISSN: 0048-5950 • E-ISSN: 1747-7107
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1093/publius/pjy044
OpenAlexW2912566302
LanguageEN
Citations received2
References cited33

China launched a massive poverty alleviation program in the 1990s that focused on nationally designated poverty counties. By injecting earmarked transfers with clear spending mandates, the central government hoped for major investments in productive capacities in the poverty counties so they could develop sustainably. Comparing fiscal data of county governments through a regression discontinuity approach, we show that the opposite was true. Poverty county officials failed to make extra investments in production-oriented areas while diversion of central transfers for administrative consumption was rampant. This article develops a better empirical strategy to challenge some earlier findings. Theoretically, this article offers a different case of elite capture under a non-democratic regime. Our focus on poverty regions also reveals the importance of maintaining bureaucratic support in local politics. It complements the popular notion that Chinese local officials are mostly geared toward growth

Bureaucracy · Central government · China · Consumption (sociology · Decentralization · Development economics · Economic growth · Economics · Elite · Government (linguistics · Local government · Market economy · Political science · Politics · Poverty · Sociology · Sustainability · China's Socioeconomic Reforms and Governance · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Public Administration

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Citations per year0.33
Citation span2020 - 2022 (3)
Highly citedNo

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