Are There Lasting Impacts of Aid To Poor Areas ? Evidence From Rural China

The paper revisits the site of a large, World Bank-financed, rural development program in China 10 years after it began and four years after disbursements ended. The program emphasized community participation in multi-sectoral interventions (including farming, animal husbandry, infrastructure and so...

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Bibliographic Details
Main Author: Chen, Shaohua
Other Authors: Ravallion, Martin, Mu, Ren
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2006
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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245 0 0 |a Are There Lasting Impacts of Aid To Poor Areas ?  |h Elektronische Ressource  |b Evidence From Rural China  |c Chen, Shaohua 
260 |a Washington, D.C  |b The World Bank  |c 2006 
300 |a 45 p. 
653 |a Anti-Poverty 
653 |a Aid Effectiveness 
653 |a Macroeconomics and Economic Growth 
653 |a Income 
653 |a Financial Literacy 
653 |a Poverty Monitoring and Analysis 
653 |a Poor 
653 |a Extreme Poverty 
653 |a Rural Development 
653 |a Economic Growth 
653 |a Community Participation 
653 |a Rural Poverty Reduction 
653 |a Inequality 
653 |a Market Failures 
653 |a Household Survey 
653 |a Poverty Reduction 
653 |a Counterfactual 
653 |a Services and Transfers to Poor 
653 |a Communities & Human Settlements 
653 |a Debt Markets 
653 |a Finance and Financial Sector Development 
653 |a Housing and Human Habitats 
653 |a Income Gains 
653 |a Economic Theory and Research 
700 1 |a Ravallion, Martin 
700 1 |a Mu, Ren 
700 1 |a Chen, Shaohua 
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082 0 |a 330 
520 |a The paper revisits the site of a large, World Bank-financed, rural development program in China 10 years after it began and four years after disbursements ended. The program emphasized community participation in multi-sectoral interventions (including farming, animal husbandry, infrastructure and social services). Data were collected on 2,000 households in project and nonproject areas, spanning 10 years. A double-difference estimator of the program's impact (on top of pre-existing governmental programs) reveals sizeable short-term income gains that were mostly saved. Only modest gains to mean consumption emerged in the longer term-in rough accord with the gain to permanent income. Certain types of households gained more than others. The educated poor were under-covered by the community-based selection process-greatly reducing overall impact. The main results are robust to corrections for various sources of selection bias, including village targeting and interference due to spillover effects generated by the response of local governments to the external aid