Public investment and regional inequality in rural China

Shenggen Fan and Xiaobo Zhang

No 71, EPTD discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: This paper develops a method for decomposing the contributions of various types of public investment on regional inequality and applies the method to rural China. Public investments are found to have contributed to production growth in both the agricultural and rural non-agricultural sectors, but their contributions to regional inequality have differed by type of investment and the region in which they are made. All types of investments in the least-developed western region reduce regional inequality, whereas assitional investments in the coastal and central regions worsen regional inequality. Investments in rural education and agricultural R&D in the western region have the largest and most favorable impacts on reducing regional inequality.

Keywords: Rural China Public investment Regional inequality. (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Public investment and regional inequality in rural China (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:fpr:eptddp:71

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