Growth of Villages in China, 1990-2002

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Growth of Villages in China, 1990-2002

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Hiroshi Sato

Abstract

This paper examines the economic and noneconomic determinants of growth disparity among Chinese villages between 1990 and 2002. By estimating a growth equation, first, we confirm a significant positive effect of the initial level of human capital, as well as the initial condition of physical infrastructure. Second, social capital measured by the degree of stable social relations at the village level is also a significant growth-promoting factor. The policy implications of our findings are that public policy promoting social stability in rural areas should be strengthened, as well as increasing financial support for rural education and infrastructure construction, especially in lower income regions.

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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd08-023.

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Date of creation: Jan 2009
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Handle: RePEc:hst:ghsdps:gd08-023

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-01-24 (All new papers)
NEP-CNA-2009-01-24 (China)
NEP-DEV-2009-01-24 (Development)
NEP-EDU-2009-01-24 (Education)
NEP-GEO-2009-01-24 (Economic Geography)
NEP-HRM-2009-01-24 (Human Capital & Human Resource Management)
NEP-SOC-2009-01-24 (Social Norms & Social Capital)
NEP-TRA-2009-01-24 (Transition Economics)
NEP-URE-2009-01-24 (Urban & Real Estate Economics)

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Other versions:
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Other versions:
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Other versions:
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