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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.

Suggested Citation

  • Hiroshi Sato, 2009. "Growth of Villages in China, 1990-2002," Global COE Hi-Stat Discussion Paper Series gd08-023, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:ghsdps:gd08-023
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    File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd08-023.pdf
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    References listed on IDEAS

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    1. Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April.
    2. Fleisher, Belton & Li, Haizheng & Zhao, Min Qiang, 2010. "Human capital, economic growth, and regional inequality in China," Journal of Development Economics, Elsevier, vol. 92(2), pages 215-231, July.
    3. Zhao Chen & Shiqing Jiang & Ming Lu & Hiroshi Sato, 2008. "How do Heterogeneous Social Interactions affect the Peer Effect in Rural-Urban Migration?:Empirical Evidence from China," LICOS Discussion Papers 22408, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    4. Rongzhu Ke & Weiying Zhang, 2003. "Trust in China: A Cross-Regional Analysis," William Davidson Institute Working Papers Series 2003-586, William Davidson Institute at the University of Michigan.
    5. Chien-Hsun Chen & Hsiu-Ling Wu, 2005. "Determinants of regional growth disparity in China's transitional economy," Journal of Economic Studies, Emerald Group Publishing, vol. 32(5), pages 406-419, October.
    6. John Knight & Li Shi, 1997. "Cumulative causation and inequality among villages in China," Oxford Development Studies, Taylor & Francis Journals, vol. 25(2), pages 149-172.
    7. Jones, Derek C. & Li, Cheng & Owen, Ann L., 2003. "Growth and regional inequality in China during the reform era," China Economic Review, Elsevier, vol. 14(2), pages 186-200.
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    Cited by:

    1. Jing You & Sangui Wang & Laurence Roope, 2014. "Multi-dimensional Intertemporal Poverty in Rural China," CSAE Working Paper Series 2014-36, Centre for the Study of African Economies, University of Oxford.
    2. Hiroshi Sato & Sai Ding, 2012. "Local Public Goods Provision in the Post-Agricultural Tax Era in Rural China," Global COE Hi-Stat Discussion Paper Series gd11-222, Institute of Economic Research, Hitotsubashi University.

    More about this item

    Keywords

    regional disparity; growth regression; social capital; rural China;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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