Public Infrastructure Development in China

Shuanglin Lin
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Shuanglin Lin: University of Nebraska

Comparative Economic Studies, 2001, vol. 43, issue 2, 83-109

Abstract: This paper shows that growth of several major infrastructures slowed down after the economic reform started in 1978, China's infrastructure development is quite uneven across regions, and local infrastructure development in many regions has lagged economic growth. It identifies three main reasons for the slower infrastructure growth: low government spending on infrastructures, decreased investment incentives of state enterprises, and the diminished ability of local government in mobilizing rural resources. The paper also discusses alternative ways for China to finance its infrastructures, including domestic and foreign debt, taxes, fees and user charges, profits of state enterprises, and labor services. Comparative Economic Studies (2001) 43, 83–109. doi:10.1057/ces.2001.9

Date: 2001
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