Growth and poverty in rural China: the role of public investments

Public investment, together with institutional and policy reforms, has contributed substantially to rapid economic growth in rural China since the late 1970s. This rapid growth has also led to dramatic reductions in rural poverty. In this study we use a simultaneous equations model and time-series (...

Descripción completa

Detalles Bibliográficos
Autores principales: Fan, Shenggen, Zhang, Linxiu, Zhang, Xiaobo
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2000
Materias:
Acceso en línea:https://hdl.handle.net/10568/155957
_version_ 1855535887908077568
author Fan, Shenggen
Zhang, Linxiu
Zhang, Xiaobo
author_browse Fan, Shenggen
Zhang, Linxiu
Zhang, Xiaobo
author_facet Fan, Shenggen
Zhang, Linxiu
Zhang, Xiaobo
author_sort Fan, Shenggen
collection Repository of Agricultural Research Outputs (CGSpace)
description Public investment, together with institutional and policy reforms, has contributed substantially to rapid economic growth in rural China since the late 1970s. This rapid growth has also led to dramatic reductions in rural poverty. In this study we use a simultaneous equations model and time-series (1978-97), cross-sectional (25 provinces) data to analyze the differential impact of different types of public investments on growth and poverty reduction in rural China. The results show that government expenditures on education have by far the largest impact on poverty reduction, and the second largest impact on production growth; it is a dominant “win-win” strategy. Government spending on agricultural research and extension has the largest impact on agricultural growth, and the third largest impact on poverty reduction. It is another win-win strategy. The next best investment is rural telecommunications, which gives the second largest impact on poverty reduction and the third largest impact on agricultural growth. The results also show that there are regional tradeoffs in achieving growth and poverty alleviation goals. If the government wishes to maximize its poverty reduction effects, then investments should be targeted to the western region. However, the sacrifice in growth by investing more in the western region is small. But, the government wishes to maximize the returns to growth in agricultural production, then it should definitely target the central region.
format Artículo preliminar
id CGSpace155957
institution CGIAR Consortium
language Inglés
publishDate 2000
publishDateRange 2000
publishDateSort 2000
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1559572025-11-06T07:18:03Z Growth and poverty in rural China: the role of public investments Fan, Shenggen Zhang, Linxiu Zhang, Xiaobo poverty public investment rural population Public investment, together with institutional and policy reforms, has contributed substantially to rapid economic growth in rural China since the late 1970s. This rapid growth has also led to dramatic reductions in rural poverty. In this study we use a simultaneous equations model and time-series (1978-97), cross-sectional (25 provinces) data to analyze the differential impact of different types of public investments on growth and poverty reduction in rural China. The results show that government expenditures on education have by far the largest impact on poverty reduction, and the second largest impact on production growth; it is a dominant “win-win” strategy. Government spending on agricultural research and extension has the largest impact on agricultural growth, and the third largest impact on poverty reduction. It is another win-win strategy. The next best investment is rural telecommunications, which gives the second largest impact on poverty reduction and the third largest impact on agricultural growth. The results also show that there are regional tradeoffs in achieving growth and poverty alleviation goals. If the government wishes to maximize its poverty reduction effects, then investments should be targeted to the western region. However, the sacrifice in growth by investing more in the western region is small. But, the government wishes to maximize the returns to growth in agricultural production, then it should definitely target the central region. 2000 2024-10-24T12:42:52Z 2024-10-24T12:42:52Z Working Paper https://hdl.handle.net/10568/155957 en Open Access application/pdf International Food Policy Research Institute Fan, Shenggen; Zhang, Linxiu; Zhang, Xiaobo. 2000. Growth and poverty in rural China: the role of public investments. EPTD Discussion Paper 66. https://hdl.handle.net/10568/155957
spellingShingle poverty
public investment
rural population
Fan, Shenggen
Zhang, Linxiu
Zhang, Xiaobo
Growth and poverty in rural China: the role of public investments
title Growth and poverty in rural China: the role of public investments
title_full Growth and poverty in rural China: the role of public investments
title_fullStr Growth and poverty in rural China: the role of public investments
title_full_unstemmed Growth and poverty in rural China: the role of public investments
title_short Growth and poverty in rural China: the role of public investments
title_sort growth and poverty in rural china the role of public investments
topic poverty
public investment
rural population
url https://hdl.handle.net/10568/155957
work_keys_str_mv AT fanshenggen growthandpovertyinruralchinatheroleofpublicinvestments
AT zhanglinxiu growthandpovertyinruralchinatheroleofpublicinvestments
AT zhangxiaobo growthandpovertyinruralchinatheroleofpublicinvestments