The Effects of a Multifaceted Poverty Alleviation Program on Rural Income and Household Behavior in China

This study examines the effects of a government-led, large-scale, multifaceted poverty alleviation program on rural income in China. We find that the program has a positive impact on national key poor counties, with a 10.9 percent increase in rural income. This effect mainly arises via industrial support, agricultural development, and public service improvement. Poverty alleviation strategies consistent with local comparative advantages yield more significant effects. Household-level analyses suggest the program changes households’ income and expenditure, and the effects are particularly substantial for the poorest households. The study provides novel insights and policy implications for China’s recent experience with poverty alleviation. (JEL H53, I32, I38, O12, O18, P25, P36)