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Informal Institutions And Local Public Investments In Rural China

Author

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  • JIANGLI DOU

    (Center for Research of Private Economy and School of Economics, Zhejiang University, Zheda Road 38, Hangzhou 310027, P. R. China)

  • BING YE

    (Center for Research of Private Economy and School of Economics, Zhejiang University, Zheda Road 38, Hangzhou 310027, P. R. China)

Abstract

In this paper, we empirically investigate the impact of informal institutions on local public investment in rural China. We find that lineage groups have a significant effect on local public investment (per capita investment in irrigation, schools, roads, etc.): One clan is good for local public goods investment, while two or more clans in a village have a negative effect. The effect is increasing with the coverage of the largest clan. The evidence on religious groups is mixed.

Suggested Citation

  • Jiangli Dou & Bing Ye, 2018. "Informal Institutions And Local Public Investments In Rural China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(04), pages 899-916, September.
    • Handle: RePEc:wsi:serxxx:v:63:y:2018:i:04:n:s0217590817420012
    DOI: 10.1142/S0217590817420012
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