Poverty Impact Analysis: Approaches and Methods - Chapter 8

Computable General Equilibrium Model: Infrastructure Development and Poverty Alleviation in the People’s Republic of China - Giới thiệu Nghiên cứu này đánh giá sự đóng góp của phát triển cơ sở hạ tầng để giảm nghèo ở nước Cộng hòa nhân dân Trung Hoa (PRC) bằng cách sử dụng một tính toán cân bằng chung (CGE) mô hình với các hộ gia đình phân tách, phân đoạn thị trường lao động đô thị và nông thôn, và cung ứng lao động nội sinh của các hộ gia đình. Nó mở rộng một mô hình CGE toàn nền kinh tế. | CHAPTER 8 Computable General Equilibrium Model Infrastructure Development and Poverty Alleviation in the People s Republic of China Li Shantong Introduction This study assesses the contribution of infrastructure development to reducing poverty in the People s Republic of China PRC using a computable general equilibrium CGE model with disaggregated households segmented urban and rural labor markets and endogenous labor supply of households. It extends an existing economy-wide CGE model of the PRC by further disaggregating the households and including labor migration. The extensions enable the CGE model to examine the poverty alleviation and distributional implications of infrastructure development. Unlike other commonly used econometric methods and case-study techniques of analyzing the linkages between infrastructure development and poverty alleviation the CGE model is comprehensive covering the essential features of the economy its institutions and their economic interdependencies. The optimization process inherent in the CGE model enables it to provide quick feedback for any policy changes in or shocks to the economy. Therefore the results not only indicate the magnitude of the influences of infrastructure and economic growth on each other but also reveal comprehensively how additional infrastructure facilities enhance economic growth. These results highlight the importance of more and betterquality infrastructure in eliminating the problem of poverty. This chapter consists of six sections. The next section provides an overview of the situation and trends of rural poverty in the PRC. This is followed with an analysis of how infrastructure construction impacts poverty reduction. The fourth section describes the structure of the CGE model of the PRC economy especially including resident grouping labor migration and issues related to infrastructure construction. The fifth section focuses on the design implementation and interpretation of the results of the various .