This paper investigates the impact of community on household income in rural China. The analytical focus is, first, on the significance of physical infrastructure, human capital, and social capital at the community level, and second on the role of public management and public policy at the local level. The estimation results of household income using a hierarchical linear model demonstrate that community-level variables have significant effects on household income, and their impact varies according to the type of the community. Regarding public policy, the findings of this paper suggest the importance of institution building to cultivate governing ability for rural cadres, to promote social stability, and to develop mechanisms to meet local needs for public services.
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Paper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number
2006-09.
Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology