Using the 2011-2012 county-level panel data, the
paper empirically investigates whether counties exited from the poverty
alleviation program affect their economic growth. The identification uses the
adjustment of lists of national poverty counties initiated by Chinese
government in 2011. It shows that the poverty alleviation program leads to large
gains in economy growth that are eventually reversed when the counties quit
from the program. Besides, the fiscal revenues and expenditures significantly decline
when previous national poverty counties are excluded from the lists.
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