Balancing Acts: Unveiling the Dynamics of Revitalization Policies in China’s Old Revolutionary Areas of Gannan

Wenmei Liao, Ruolan Yuan, Xu Zhang, Na Li and Hailan Qiu ()
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Wenmei Liao: School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China
Ruolan Yuan: School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China
Xu Zhang: School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China
Na Li: School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China
Hailan Qiu: School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China

Agriculture, 2024, vol. 14, issue 3, 1-19

Abstract: A series of revitalization policies (RPs) have been implemented in China’s Old Revolutionary Areas (ORAs). Evaluating the impact of these RPs is of paramount importance for refining policy design and achieving the goal of common prosperity. This study focuses on the ORAs in Gannan (ORAG) and employs the Propensity Score Matching Difference-in-Differences (PSM-DID) method to assess the effects of the RPs from two perspectives: stimulating economic growth and increasing farmers’ income, utilizing county-level data spanning from 2006 to 2019. The findings of this study reveal that while the RP restrains the growth of per capita GDP in ORAG, it significantly promotes the growth of farmers’ income. Moreover, it plays a crucial role in reducing the income gap between ORAG and Jiangxi Province, thus promoting the common prosperity of farmers in ORAG. A detailed examination using quantile regression shows that the RP has a significant and consistent negative impact on GDP per capita GDP at different quantile points. At the same time, it has a significant positive effect on increasing farmers’ income at the 25% quantile point, effectively reducing income inequality among farmers at all quantile levels. The mechanism analysis shows that the RP has stimulated increased government investment in ORAG, leading to an increase in farmers’ incomes and a reduction in income disparities. However, the study also highlights the existence of a “policy trap” that has hindered the RP’s effectiveness in ORAG. Drawing upon these findings, this paper offers policy recommendations to enhance the impact of RP in ORAs.

Keywords: revitalization and development of old revolutionary areas; policy effects; difference-in-differences method; propensity score matching (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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