Has the largest-scale poverty alleviation relocation in human history promoted urbanization? An empirical analysis from China

Heng Wang, Wei Huang, Shiyuan Wang and Yang Zhou

Applied Economics, 2024, vol. 56, issue 55, 7209-7221

Abstract: Poverty alleviation resettlement (PAR) programme is the largest-scale poverty alleviation relocation in human history, but its impact on urbanization has received little academic attention. To fill this important gap, this study first proposed a theoretical framework of the “pressure-state-response-effect” (PSRE) of PAR promoting urbanization. Then, we regarded PAR as a quasi-natural experiment and used the PSM-DID model to assess the impact of PAR on urbanization based on the panel data of 2,081 counties in China from 2013 to 2020. Results showed that PAR had a significant positive impact on the urbanization rate of these counties, with a growth rate of 0.64%. Further mechanism analysis showed that industrial upgrading could expand the impact of PAR implementation on promoting urbanization. Additionally, PAR in the eastern and western, hilly and mountainous counties could improve the urbanization level more than that in the central and plain counties. The effectiveness of PAR varied across regions, requiring consideration of local socioeconomic complexity rather than a one-size-fits-all approach. Our findings would have important reference value for other developing countries to formulate their anti-poverty strategies to achieve the 2030 UN Sustainable Development Goals.

Date: 2024
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DOI: 10.1080/00036846.2023.2277704

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