The relationship between poverty-stricken counties, personal income, and industrial economy: An empirical study based on China's targeted poverty alleviation policy

Based on China's targeted poverty alleviation policy in 2013, this study investigates the impact of the policy on individual income and its underlying mechanisms. Using panel data from 1661 counties in China spanning 2009 to 2018 , we employ a Difference-in-Difference (DID) model and find that: (1) The implementation of targeted poverty alleviation (TPA) policies has led to a per capita income increase of RMB 504 for residents in poverty-stricken counties. (2) Industrial poverty alleviation plays a crucial role as a mechanism. (3) Beyond income, these policies have positive effects on other socioeconomic variables , including consumption, savings, medical care, and social security. (4) The policies also contribute to macroeconomic growth through individual savings and consumption accumulation. (5) Regional disparities exist in poverty reduction effects between central and western China. This paper offers a quantitative reference for formulating poverty reduction policies in developing countries.