Intergovernmental transfers and local education provision — Evaluating China's 8-7 National Plan for Poverty Reduction

Xiaobo Lü

China Economic Review, 2015, vol. 33, issue C, 200-211

Abstract: Intergovernmental transfers are an important source of local public goods and services provision in many developing countries. Yet the empirical evidence on their effectiveness remains inconclusive partly because transfers are endogenous to political influence. This paper investigates the impact of a mix of intergovernmental transfers from a large-scale poverty relief program on local education spending in China between 1994 and 2000. Using a fuzzy regression discontinuity design, I first show no systematic evidence that counties benefiting from the program enhanced local education spending during the period of program implementation. I further show that the program has neither short-term nor long-term impacts on illiteracy reduction for the targeted counties.

Keywords: Intergovernmental transfers; Poverty relief; Education spending; China (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:33:y:2015:i:c:p:200-211

DOI: 10.1016/j.chieco.2015.02.001

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