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Road development, economic growth, and poverty reduction in China

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  • Fan, Shenggen
  • Chan-Kang, Connie

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

Suggested Citation

  • Fan, Shenggen & Chan-Kang, Connie, 2004. "Road development, economic growth, and poverty reduction in China," DSGD discussion papers 12, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:dsgddp:12
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