Escaping from poverty trap: a choice between government transfer payments and public services
Abstract Background Anti-poverty has always been an important issue to be settled. What policies should be selected to help individuals escaping from the poverty trap: by directly offering transfer payments or indirectly providing public services? This paper is among the first to explore the effects...
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| Format: | Article |
| Language: | English |
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BMC
2017-06-01
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| Series: | Global Health Research and Policy |
| Subjects: | |
| Online Access: | http://link.springer.com/article/10.1186/s41256-017-0035-x |
| _version_ | 1811324236653920256 |
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| author | Sixia Chen Jianjun Li Shengfeng Lu Bo Xiong |
| author_facet | Sixia Chen Jianjun Li Shengfeng Lu Bo Xiong |
| author_sort | Sixia Chen |
| collection | DOAJ |
| description | Abstract Background Anti-poverty has always been an important issue to be settled. What policies should be selected to help individuals escaping from the poverty trap: by directly offering transfer payments or indirectly providing public services? This paper is among the first to explore the effects of public anti-poverty programs system in China. Methods We Using unbalanced panel data of China Health and Nutrition Survey (CHNS) from 1989 to 2009, we demonstrate how the individual poverty status is determined through a four-staged simultaneous model. We choose the 3SLS (Three Staged Linear Squared) methodology to do the estimation. Results GTPs (Government Transfer Payments) don’t have positive effects on poverty reductions. The results demonstrate that GTPs increasing by 10% makes private transfer payments decrease by 3.9%. Meanwhile, GTPs increasing by 10% makes the household income decreased by 27.1%. However, public services (such as medical insurance, health services, hygiene protection etc.) have significantly positive impacts on poverty reduction. Public services share a part of living cost of the poor, and are conducive for people to gain higher household income. Conclusions GTPs given by governments are not effective in reducing the poverty, as a result of “crowd-out effect” and “inductive effect”. However, public services are suggested to be adopted by governments to help the poor out of the poverty trap. |
| first_indexed | 2024-04-13T14:10:46Z |
| format | Article |
| id | doaj.art-35c085240496491d8c44d2dd6b287786 |
| institution | Directory Open Access Journal |
| issn | 2397-0642 |
| language | English |
| last_indexed | 2024-04-13T14:10:46Z |
| publishDate | 2017-06-01 |
| publisher | BMC |
| record_format | Article |
| series | Global Health Research and Policy |
| spelling | doaj.art-35c085240496491d8c44d2dd6b2877862022-12-22T02:43:48ZengBMCGlobal Health Research and Policy2397-06422017-06-012111610.1186/s41256-017-0035-xEscaping from poverty trap: a choice between government transfer payments and public servicesSixia Chen0Jianjun Li1Shengfeng Lu2Bo Xiong3School of Public Finance and Taxation, Zhongnan University of Economics and LawSchool of Public Finance and Taxation, Southwestern University of Finance and EconomicsEconomics and Management School, Wuhan UniversityEconomics and Management School, Wuhan UniversityAbstract Background Anti-poverty has always been an important issue to be settled. What policies should be selected to help individuals escaping from the poverty trap: by directly offering transfer payments or indirectly providing public services? This paper is among the first to explore the effects of public anti-poverty programs system in China. Methods We Using unbalanced panel data of China Health and Nutrition Survey (CHNS) from 1989 to 2009, we demonstrate how the individual poverty status is determined through a four-staged simultaneous model. We choose the 3SLS (Three Staged Linear Squared) methodology to do the estimation. Results GTPs (Government Transfer Payments) don’t have positive effects on poverty reductions. The results demonstrate that GTPs increasing by 10% makes private transfer payments decrease by 3.9%. Meanwhile, GTPs increasing by 10% makes the household income decreased by 27.1%. However, public services (such as medical insurance, health services, hygiene protection etc.) have significantly positive impacts on poverty reduction. Public services share a part of living cost of the poor, and are conducive for people to gain higher household income. Conclusions GTPs given by governments are not effective in reducing the poverty, as a result of “crowd-out effect” and “inductive effect”. However, public services are suggested to be adopted by governments to help the poor out of the poverty trap.http://link.springer.com/article/10.1186/s41256-017-0035-xGovernment transfer paymentsPublic servicesAnti-povertyCrowd-out effectInductive effect |
| spellingShingle | Sixia Chen Jianjun Li Shengfeng Lu Bo Xiong Escaping from poverty trap: a choice between government transfer payments and public services Global Health Research and Policy Government transfer payments Public services Anti-poverty Crowd-out effect Inductive effect |
| title | Escaping from poverty trap: a choice between government transfer payments and public services |
| title_full | Escaping from poverty trap: a choice between government transfer payments and public services |
| title_fullStr | Escaping from poverty trap: a choice between government transfer payments and public services |
| title_full_unstemmed | Escaping from poverty trap: a choice between government transfer payments and public services |
| title_short | Escaping from poverty trap: a choice between government transfer payments and public services |
| title_sort | escaping from poverty trap a choice between government transfer payments and public services |
| topic | Government transfer payments Public services Anti-poverty Crowd-out effect Inductive effect |
| url | http://link.springer.com/article/10.1186/s41256-017-0035-x |
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