Growth, Inequality, and Poverty in Rural China: The Role of Public InvestmentsIn the past two decades, China has achieved world renown for reducing rural poverty. However, it is becoming harder to reduce poverty and inequality further in China, even though its economy continues to grow. This report compares the impact specific rural public investments can have on promoting growth and reducing poverty and inequality. Returns to these investments are calculated for the nation as a whole and for three economic zones in the west, central, and coastal regions of the country. Government expenditures that have the highest impact on poverty and growth include education, agricultural research and development, and rural infrastructure (roads, electricity, and telecommunications). Notably, spending on irrigation and anti-poverty loans had minimal impact. The report discusses the implications of these findings for setting future priorities for government investment. It also suggests avenues for future research and calls for a better understanding of how to improve the effectiveness of public resources. This report will be of interest to professionals involved in rural poverty reduction, rural development, agricultural growth, food security, and public investment policy. |
Common terms and phrases
agricul agricultural growth agricultural labor agricultural R&D agricultural research Anhui Beijing capital stock China Rural Statistical Chinese agricultural coefficients developing countries economic effects electricity estimated Fan and Pardey Food Policy Research Fujian Gansu government expenditures government investment government spending growth and poverty growth in agricultural Guangdong Guangxi Guizhou Hebei Henan households Hubei IFPRI income increased Inner Mongolia input investment in rural Jiangsu Jiangxi Jilin labor productivity Liaoning ment Ministry Ningxia nonagricultural number of poor number of rural percent per annum percentage Policy Research Institute poverty alleviation poverty and regional poverty line poverty reduction province public investment Qinghai reduce rural poverty reforms regional inequality returns Rozelle rural areas rural China rural education rural enterprise rural industry rural poor rural roads SCHY Shaanxi Shandong Sichuan sources Statistical Yearbook SSB Table telecommunications Tianjin tion total rural tural urban variables wages western region World Bank Xinjiang yuan Zhang Zhejiang
Popular passages
Page 69 - Public Research Resource Allocation in Chinese Agriculture: A Test of Induced Technological Innovation Hypotheses," Economic Development and Cultural Change , Vol. 40. No. 1, pp. 55 — 73, October 1991b. Lin, Justin Yifu, "The Household Responsibility System Reform and the Adoption of Hybrid Rice in China , " Journal of Development Economics, Vol.
Page 74 - Zhang is a senior research fellow and deputy director of the Center for Chinese Agricultural Policy of the Chinese Academy of Sciences.
Page 68 - JIAN, T., J. SACHS AND A. WARNER (1996), "Trends in Regional Inequality in China", China Economic Review, 1.