This paper attempts to evaluate the targeting accuracy of anti-poverty programs in rural China by analyzing the county data and the unique household data collected from 592 nationally designated poor counties. Two issues will be investigated: the targeting accuracy of poor county selection in the 2001 designation and the targeting accuracy of poverty alleviation funds allocated for poor counties and households within the counties. We have modified the Targeting Count Gap and Targeting Count Error, where the results from the modified TCE indicate a fairly considerable improvement in targeting accuracy in the 2001 designation. On the provincial level we found that one-half of the provinces allocate funds equally among counties no matter how high their income per capita. We did not find evidence that poor households obtain more funds than other households.
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