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Infrastructure Spending in China Increases Trust in Local Government

Author

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  • Bingqin Li

    (Australian National University)

  • Guy Mayraz

    (University of Melbourne)

Abstract

Following the 2008/9 financial crisis, China instituted a 4 trillion RMB stimulus package that was spent mostly on infrastructure, with a particular impact at local level. The goal was to sustain economic growth and preserve social stability. We use the Asian Barometer surveys from shortly before and after the stimulus to examine its impact on public trust in government, and find a reversal of a previous downward trend and a substantial increase in trust in local government post stimulus. We consider a number of alternative explanations for this increase in trust, and conclude that the stimulus package is the most convincing explanation. Both perceptions of corruption and experience of corruption increased over the stimulus period. Given the strong negative correlation between corruption and trust, this implies that trust would have increased even further if the level of corruption had remained the same.

Suggested Citation

  • Bingqin Li & Guy Mayraz, 2017. "Infrastructure Spending in China Increases Trust in Local Government," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 341-356, May.
    • Handle: RePEc:spr:soinre:v:132:y:2017:i:1:d:10.1007_s11205-015-1223-z
    DOI: 10.1007/s11205-015-1223-z
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    Cited by:

    1. Yuqing An & Jin Yeu Tsou & Kapo Wong & Yuanzhi Zhang & Dawei Liu & Yu Li, 2018. "Detecting Land Use Changes in a Rapidly Developing City during 1990–2017 Using Satellite Imagery: A Case Study in Hangzhou Urban Area, China," Sustainability, MDPI, vol. 10(9), pages 1-14, September.
    2. Chau-kiu Cheung & Xiaodong Yue, 2023. "National Experiences and Trust in China’s National Government Among Hong Kong Chinese Youth," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 99-117, August.

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    More about this item

    Keywords

    Financial crisis; Stimulus package; Public spending; Social stability; Trust in government; China; Infrastructure;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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