Effectiveness Test of Rural Revitalization Demonstration Policy on Rural Economic Development in China: Analysis of DID Based on the Data of Henan Province in China

Abstract

Demonstration Policy on rural revitalization aims at driving the economic development of the entire region through the demonstration effect. Using the panel data of 15 rural revitalization demonstration areas in Henan province of China from 2013 to 2020, this study explores the promotion effect of rural revitalization demonstration policies on rural economy through the Differences-in-Differences (DID) method. The results show that the construction of rural revitalization demonstration areas has significantly promoted the growth of local economy. The demonstration effect is the best in the middle of the economic development, followed by the better economic development of the demonstration, and finally the economic backwardness of the demonstration. More specifically, the order of effect from large to small is as follows: counties (second-level administrative regions), poverty-stricken counties (third-level administrative regions), county-level cities (first-level administrative regions).