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Road construction and rural household income: Empirical evidence from village road paving in China

Hong Zhang, Wenbing Dong and Xian Fang

Finance Research Letters, 2023, vol. 51, issue C

Abstract: This paper explores the consequences of road paving projects in rural Chinese villages, which cost more than $100 billion annually since 2010 and reach nearly every household in rural China. Using the China Family Panel Studies and China Traffic Statistics Yearbook, we find that the paving road projects increase the income of rural households, especially ones with lower education levels and lower assets. The mechanism analysis also shows that the increase in household incomes mainly results from a rise in local employment. This paper contributes to the research on the economic consequences of road infrastructure in emerging economies.

Keywords: Infrastructure construction; Village paved road; Rural household income (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322006365

DOI: 10.1016/j.frl.2022.103460

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