Premium
Public investment and regional inequality in rural China
Author(s) -
Zhang Xiaobo,
Fan Shenggen
Publication year - 2004
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2004.tb00179.x
Subject(s) - inequality , investment (military) , china , agriculture , economics , rural area , public investment , production (economics) , agricultural productivity , economic growth , economic geography , geography , political science , macroeconomics , mathematical analysis , mathematics , archaeology , politics , law
This paper develops a method for decomposing the contributions of various types of public investment to 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 investment in the least‐developed western region reduce regional inequality, whereas additional 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.