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Road development, economic growth, and poverty reduction in China

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Author Info
Fan, Shenggen
Chan-Kang, Connie

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Abstract

"Since 1978, China has adopted a series of economic reforms leading to rapid economic growth and poverty reduction. National Gross Domestic Product (GDP) grew at about 9 percent per annum from 1978 to 2002, while per capita income increased by 8 percent per annum. The post-reform period was also characterized by an unprecedented decline in poverty. However, income inequality has worsened between coastal and interior provinces as well as between rural and urban areas. A number of factors contributed to this widening disparity in regional development in China, including differences in natural resources endowments, and infrastructure and human capital development... The objective of this study is to assess the impact of public infrastructure on growth and poverty reduction in China, paying a particular attention to the contribution of roads. ...The most significant finding of this study is that low quality (mostly rural) roads have benefit/cost ratios for national GDP that are about four times larger than the benefit/cost ratios for high quality roads. Even in terms of urban GDP, the benefit/cost ratios for low quality roads are much greater than those for high quality roads." from Authors' Abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series DSGD discussion papers with number 12.

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Date of creation: 2004
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Handle: RePEc:fpr:dsgddp:12

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Keywords: Human capital ;

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  1. Fan, Shenggen & Chan-Kang, Connie & Mukherjee, Anit, 2005. "Rural and urban dynamics and poverty: Evidence from China and India," FCND discussion papers 196, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. John Gibson & Susan Olivia, 2008. "The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia," Working Papers in Economics 08/17, University of Waikato, Department of Economics. [Downloadable!]
  3. Klemick, Heather & Leonard, Kenneth L. & Masatu, Melkiory C., 2008. "Defining Access to Health Care: Evidence on the Importance of Quality and Distance in Rural Tanzania," Working Papers 6178, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
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  4. Christopher Edmonds & Sumner J. La Croix & Yao Li, 2006. "The China's Rise as an International Trading Power," Economics Study Area Working Papers 88, East-West Center, Economics Study Area. [Downloadable!]
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