Chinaʹs rural electrification and poverty reduction

This paper aims at quantifying the impact of rural investment in power sector on the rural economic development and poverty reduction in China. An econometric model was developed and six Chinese provinces with different economic background are studied. These provinces comprise Jiangsu and Liaoning with well-developed rural economy, Hebei and Henan with medium-developed rural economy, and Shannxi and Xinjiang with the least-developed rural economy. Over 20-yr historical data for the six provincial rural areas—counties and below, was collected in rural economic development, households, population, per capita income, community infrastructure development, capital investment, electricity consumption, output values in agriculture sector, and township and village enterprises. SPSS V10.0 software program was used in the research. This paper concludes that priority of capital investment in rural power sector should be given to Jiangsu and Liaoning if the objective of the investment is to develop rural economy, and that the priority should be given to Hebei and Henan if the objective is to reduce poverty in rural area.