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ID143443
Title ProperIntergovernmental transfers and local education provision — evaluating China's 8-7 National Plan for Poverty Reduction
LanguageENG
AuthorLu, Xiaobo
Summary / Abstract (Note)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.
`In' analytical NoteChina Economic Review Vol. 34; Apr 2015: p.200-211
Journal SourceChina Economic Review 2015-04 33
Key WordsChina ;  Intergovernmental Transfers ;  Education Spending ;  Poverty Relief