Poverty elimination,local government behavior and financial self-sufficiency:evidence from China's national poverty-stricken counties
Regarding poverty governance in China,scholars focus on the poverty alleviation policy in the process rather than the"removal of the hat"(RH)after poverty elimination.They generally discuss the effect on the poor but ignore the impact on government finances.Based on the China's national-level pov-erty-stricken counties panel data from 2015 to 2020,this paper finds that RH has significantly improved the current and long-term financial self-sufficiency of poverty-stricken counties,especially in non-eth-nic autonomous regions,poor counties with higher levels of industrialization,lower levels of servitization or more human capital.The mechanism analysis shows that RH positively encourages the poverty-stricken county governments to improve their own financial resources by strengthening tax efforts,and continuously enhance the local self-financing capacity,while at the same time moderately reducing the scale of financial expenditure.Further research indicates that RH has no significant impact on the level of local basic public services,but significantly promotes high-quality economic development marked by total factor productivity.
poverty eliminationfinancial self-sufficiencytax effortshigh-quality development