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Regional road development, rural and urban poverty: Evidence from China

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  • Fan, Shenggen
  • Chan-Kang, Connie

Abstract

The study estimates the impact of road investments on overall economic growth, rural and urban growth, and rural and urban poverty reduction. To achieve these goals, an econometric model that captures the different channels through which road investment impacts growth and poverty is developed and estimated using provincial-level data for 1982-1999 in China. Low-grade (mostly rural) roads have benefit/cost ratios for national GDP that are about four times larger than the benefit/cost ratios for high-grade roads. In terms of poverty reduction, low-grade roads raise far more rural and urban poor above the poverty line per yuan invested than do high-grade roads. Another significant finding of the study is the trade-off between growth and poverty reduction when investing in different parts of China. Road investments yield their highest economic returns in the eastern and central regions of China, while their contributions to poverty reduction are greatest in western China (especially the southwest region).

Suggested Citation

  • Fan, Shenggen & Chan-Kang, Connie, 2008. "Regional road development, rural and urban poverty: Evidence from China," Transport Policy, Elsevier, vol. 15(5), pages 305-314, September.
  • Handle: RePEc:eee:trapol:v:15:y:2008:i:5:p:305-314
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:pubeco:v:152:y:2017:i:c:p:119-132 is not listed on IDEAS
    2. Winters, L. Alan, 2014. "Globalization, Infrastructure, and Inclusive Growth," ADBI Working Papers 464, Asian Development Bank Institute.
    3. Sevgi Sezer & Tezcan Abasiz, 2017. "The Impact Of Logistics Industry On Economic Growth: An Application In Oecd Countries," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 5(1), pages 11-23.
    4. Hooi Lean, Hooi & Huang, Wei & Hong, Junjie, 2014. "Logistics and economic development: Experience from China," Transport Policy, Elsevier, vol. 32(C), pages 96-104.
    5. repec:eee:transa:v:100:y:2017:i:c:p:319-336 is not listed on IDEAS
    6. Khalid Sekkat, 2013. "Does Infrastructure Mitigate the Effect of Urban Concentration on Poverty in Developing Countries?," Working Papers 800, Economic Research Forum, revised Nov 2013.
    7. Anderson, Kym & Strutt, Anna, 2014. "Food security policy options for China: Lessons from other countries," Food Policy, Elsevier, vol. 49(P1), pages 50-58.
    8. Muhammad Halley Yudhistira & Yusuf Sofyandi, 2016. "Seaport Status, Access, and Regional Development in Indonesia," Working Papers in Economics and Business 201601, Faculty of Economics and Business, University of Indonesia, revised May 2016.
    9. Lindy Charlery & Martin R. Nielsen & Henrik Meilby & Carsten Smith-Hall, 2016. "Effects of New Roads on Environmental Resource Use in the Central Himalaya," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-20, April.
    10. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
    11. Kelly, Charlotte & Laird, James & Costantini, Stefano & Richards, Phil & Carbajo, José & Nellthorp, John, 2015. "Ex post appraisal: What lessons can be learnt from EU cohesion funded transport projects?," Transport Policy, Elsevier, vol. 37(C), pages 83-91.
    12. Suhyun Jung & Seong-Hoon Cho & Roland K. Roberts, 2015. "The impact of government funding of poverty reduction programmes," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 653-675, August.
    13. Xu, Meng & Grant-Muller, Susan & Gao, Ziyou, 2015. "Evolution and assessment of economic regulatory policies for expressway infrastructure in China," Transport Policy, Elsevier, vol. 41(C), pages 42-49.
    14. Komarek, Adam M. & Waldron, Scott A. & Brown, Colin G., 2012. "An exploration of livestock-development policies in western China," Food Policy, Elsevier, vol. 37(1), pages 12-20.
    15. Sun, Zhentian & Li, Xuhong & Qiao, Wenxin & Haghani, Ali, 2013. "Entropy-based performance evaluation on institutional structures of trunk highway management—Case study in China," Transport Policy, Elsevier, vol. 27(C), pages 85-91.
    16. repec:eee:trapol:v:60:y:2017:i:c:p:24-33 is not listed on IDEAS
    17. repec:gam:jsusta:v:8:y:2016:i:4:p:363:d:68149 is not listed on IDEAS

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