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The nonlinear effect of financial and fiscal policies on poverty alleviation in China—An empirical analysis of Chinese 382 impoverished counties with PSTR models


Autoři: Xicong Kuang aff001;  Huihuang Liu aff001;  Guoqiang Guo aff002;  Haixing Cheng aff003
Působiště autorů: School of Economics and Trade, Hunan University, Changsha, China aff001;  School of Economics, Huazhong University of Science and Technology, Wuhan, China aff002;  School of Economics, Huazhong University of Science and Technology, Wuhan, China aff003
Vyšlo v časopise: PLoS ONE 14(11)
Kategorie: Research Article
doi: https://doi.org/10.1371/journal.pone.0224375

Souhrn

Using panel smooth transition regression (PSTR) models, this paper studies the effects of financial and fiscal policies on poverty reduction across 382 poverty-stricken counties in China. The findings are that both fiscal and financial policies have a positive influence on poverty reduction, and their relationships are nonlinear. For either a high or low degree of poverty, fiscal policies are effective for poverty reduction, while financial policies have a greater impact on poverty reduction when there is a medium degree of poverty. Therefore, in deciding which policies should be prioritized for reducing poverty, the level of poverty should be taken into account. To be more specific, when a portfolio of poverty-reduction policies is implemented, fiscal policies should be prioritized at the beginning, when the incidence of poverty is high. Then, financial support should come to the forefront as the poverty level drops, and fiscal support should be stepped up when the poverty level continues to drop.

Klíčová slova:

Economic development – Finance – Public finance – Socioeconomic aspects of health – Urban ecology – Fiscal policy – Monetary policy – Poverty reduction


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