The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data

Qinman Li

doi:doi:10.11648/j.ijefm.20200801.13

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The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data

Qinman Li

Published in International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 1)

Received: 8 December 2019 Accepted: 27 December 2019 Published: 9 January 2020

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Abstract

China's governments at all levels have played a significant role in reducing the absolute poverty through fiscal expenditure arrangements. At present, China has become the country with the strongest efforts and the most significant effect to fight against poverty in the world. However, the governance of poverty is not only simply to solve the existing poverty problem, but should take preventive measures from a certain forward-looking perspective, strengthen the family's ability to resist risks, and reduce the probability of poverty from the root cause. This paper empirically examines the impact of China's fiscal educational expenditure, fiscal social security and employment expenditure, and fiscal health expenditure on vulnerability to poverty of rural households by using the CHIP2013 micro-survey data, and analyzes its mechanisms. The vulnerability value is calculated according to the VEP method, and we identify whether the counties where the households are located are national poverty counties so as to distinguish the effects. The poverty vulnerability level of farmers in national poverty-stricken counties is significantly higher than that of non-poverty-stricken counties. The baseline regression results show that all three kinds of fiscal expenditures can significantly reduce the vulnerability of farmers. Health care expenditure has the strongest effect. Social security and employment expenditure has a stronger effect on the vulnerability of farmers in national poverty-stricken counties than non-poverty-stricken counties. Then, the explained variables are replaced with dummy variables that are vulnerable at 50% threshold, and the Probit model is used for robustness testing to prove that the baseline regression results are credible. Finally, this paper examines the mechanism by which fiscal expenditure affects the vulnerability of farmers, and verifies that it affects the vulnerability of household poverty by affecting individual employment decisions.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 1)
DOI	10.11648/j.ijefm.20200801.13
Page(s)	20-30
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Vulnerability to Poverty, Fiscal Expenditure, Rural Poverty

References

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APA Style

Qinman Li. (2020). The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data. International Journal of Economics, Finance and Management Sciences, 8(1), 20-30. https://doi.org/10.11648/j.ijefm.20200801.13

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ACS Style

Qinman Li. The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data. Int. J. Econ. Finance Manag. Sci. 2020, 8(1), 20-30. doi: 10.11648/j.ijefm.20200801.13

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AMA Style

Qinman Li. The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data. Int J Econ Finance Manag Sci. 2020;8(1):20-30. doi: 10.11648/j.ijefm.20200801.13

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@article{10.11648/j.ijefm.20200801.13,
  author = {Qinman Li},
  title = {The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {8},
  number = {1},
  pages = {20-30},
  doi = {10.11648/j.ijefm.20200801.13},
  url = {https://doi.org/10.11648/j.ijefm.20200801.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200801.13},
  abstract = {China's governments at all levels have played a significant role in reducing the absolute poverty through fiscal expenditure arrangements. At present, China has become the country with the strongest efforts and the most significant effect to fight against poverty in the world. However, the governance of poverty is not only simply to solve the existing poverty problem, but should take preventive measures from a certain forward-looking perspective, strengthen the family's ability to resist risks, and reduce the probability of poverty from the root cause. This paper empirically examines the impact of China's fiscal educational expenditure, fiscal social security and employment expenditure, and fiscal health expenditure on vulnerability to poverty of rural households by using the CHIP2013 micro-survey data, and analyzes its mechanisms. The vulnerability value is calculated according to the VEP method, and we identify whether the counties where the households are located are national poverty counties so as to distinguish the effects. The poverty vulnerability level of farmers in national poverty-stricken counties is significantly higher than that of non-poverty-stricken counties. The baseline regression results show that all three kinds of fiscal expenditures can significantly reduce the vulnerability of farmers. Health care expenditure has the strongest effect. Social security and employment expenditure has a stronger effect on the vulnerability of farmers in national poverty-stricken counties than non-poverty-stricken counties. Then, the explained variables are replaced with dummy variables that are vulnerable at 50% threshold, and the Probit model is used for robustness testing to prove that the baseline regression results are credible. Finally, this paper examines the mechanism by which fiscal expenditure affects the vulnerability of farmers, and verifies that it affects the vulnerability of household poverty by affecting individual employment decisions.},
 year = {2020}
}

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TY  - JOUR
T1  - The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data
AU  - Qinman Li
Y1  - 2020/01/09
PY  - 2020
N1  - https://doi.org/10.11648/j.ijefm.20200801.13
DO  - 10.11648/j.ijefm.20200801.13
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 20
EP  - 30
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20200801.13
AB  - China's governments at all levels have played a significant role in reducing the absolute poverty through fiscal expenditure arrangements. At present, China has become the country with the strongest efforts and the most significant effect to fight against poverty in the world. However, the governance of poverty is not only simply to solve the existing poverty problem, but should take preventive measures from a certain forward-looking perspective, strengthen the family's ability to resist risks, and reduce the probability of poverty from the root cause. This paper empirically examines the impact of China's fiscal educational expenditure, fiscal social security and employment expenditure, and fiscal health expenditure on vulnerability to poverty of rural households by using the CHIP2013 micro-survey data, and analyzes its mechanisms. The vulnerability value is calculated according to the VEP method, and we identify whether the counties where the households are located are national poverty counties so as to distinguish the effects. The poverty vulnerability level of farmers in national poverty-stricken counties is significantly higher than that of non-poverty-stricken counties. The baseline regression results show that all three kinds of fiscal expenditures can significantly reduce the vulnerability of farmers. Health care expenditure has the strongest effect. Social security and employment expenditure has a stronger effect on the vulnerability of farmers in national poverty-stricken counties than non-poverty-stricken counties. Then, the explained variables are replaced with dummy variables that are vulnerable at 50% threshold, and the Probit model is used for robustness testing to prove that the baseline regression results are credible. Finally, this paper examines the mechanism by which fiscal expenditure affects the vulnerability of farmers, and verifies that it affects the vulnerability of household poverty by affecting individual employment decisions.
VL  - 8
IS  - 1
ER  -

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Qinman Li

The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China

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APA Style

Qinman Li. (2020). The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data. International Journal of Economics, Finance and Management Sciences, 8(1), 20-30. https://doi.org/10.11648/j.ijefm.20200801.13

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ACS Style

Qinman Li. The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data. Int. J. Econ. Finance Manag. Sci. 2020, 8(1), 20-30. doi: 10.11648/j.ijefm.20200801.13

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AMA Style

Qinman Li. The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data. Int J Econ Finance Manag Sci. 2020;8(1):20-30. doi: 10.11648/j.ijefm.20200801.13

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@article{10.11648/j.ijefm.20200801.13,
  author = {Qinman Li},
  title = {The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {8},
  number = {1},
  pages = {20-30},
  doi = {10.11648/j.ijefm.20200801.13},
  url = {https://doi.org/10.11648/j.ijefm.20200801.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200801.13},
  abstract = {China's governments at all levels have played a significant role in reducing the absolute poverty through fiscal expenditure arrangements. At present, China has become the country with the strongest efforts and the most significant effect to fight against poverty in the world. However, the governance of poverty is not only simply to solve the existing poverty problem, but should take preventive measures from a certain forward-looking perspective, strengthen the family's ability to resist risks, and reduce the probability of poverty from the root cause. This paper empirically examines the impact of China's fiscal educational expenditure, fiscal social security and employment expenditure, and fiscal health expenditure on vulnerability to poverty of rural households by using the CHIP2013 micro-survey data, and analyzes its mechanisms. The vulnerability value is calculated according to the VEP method, and we identify whether the counties where the households are located are national poverty counties so as to distinguish the effects. The poverty vulnerability level of farmers in national poverty-stricken counties is significantly higher than that of non-poverty-stricken counties. The baseline regression results show that all three kinds of fiscal expenditures can significantly reduce the vulnerability of farmers. Health care expenditure has the strongest effect. Social security and employment expenditure has a stronger effect on the vulnerability of farmers in national poverty-stricken counties than non-poverty-stricken counties. Then, the explained variables are replaced with dummy variables that are vulnerable at 50% threshold, and the Probit model is used for robustness testing to prove that the baseline regression results are credible. Finally, this paper examines the mechanism by which fiscal expenditure affects the vulnerability of farmers, and verifies that it affects the vulnerability of household poverty by affecting individual employment decisions.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Fiscal Expenditures on Vulnerability to Poverty of Rural Households and Its Mechanism-based on Evidence from CHIP Data
AU  - Qinman Li
Y1  - 2020/01/09
PY  - 2020
N1  - https://doi.org/10.11648/j.ijefm.20200801.13
DO  - 10.11648/j.ijefm.20200801.13
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 20
EP  - 30
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20200801.13
AB  - China's governments at all levels have played a significant role in reducing the absolute poverty through fiscal expenditure arrangements. At present, China has become the country with the strongest efforts and the most significant effect to fight against poverty in the world. However, the governance of poverty is not only simply to solve the existing poverty problem, but should take preventive measures from a certain forward-looking perspective, strengthen the family's ability to resist risks, and reduce the probability of poverty from the root cause. This paper empirically examines the impact of China's fiscal educational expenditure, fiscal social security and employment expenditure, and fiscal health expenditure on vulnerability to poverty of rural households by using the CHIP2013 micro-survey data, and analyzes its mechanisms. The vulnerability value is calculated according to the VEP method, and we identify whether the counties where the households are located are national poverty counties so as to distinguish the effects. The poverty vulnerability level of farmers in national poverty-stricken counties is significantly higher than that of non-poverty-stricken counties. The baseline regression results show that all three kinds of fiscal expenditures can significantly reduce the vulnerability of farmers. Health care expenditure has the strongest effect. Social security and employment expenditure has a stronger effect on the vulnerability of farmers in national poverty-stricken counties than non-poverty-stricken counties. Then, the explained variables are replaced with dummy variables that are vulnerable at 50% threshold, and the Probit model is used for robustness testing to prove that the baseline regression results are credible. Finally, this paper examines the mechanism by which fiscal expenditure affects the vulnerability of farmers, and verifies that it affects the vulnerability of household poverty by affecting individual employment decisions.
VL  - 8
IS  - 1
ER  -

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