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Research Report 125
Growth, Inequality, and Poverty in Rural China: The Role of Public Investments |
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by Shenggen Fan, Linxiu Zhang, and Xiaobo Zhang
2002 |
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ABOUT THIS REPORT
In the past two decades, China has achieved world renown for reducing rural poverty. However, it is becoming harder to reduce poverty and inequality further in China, even though its economy continues to grow. This report compares the impact specific rural public investments can have on promoting growth and reducing poverty and inequality. Returns to these investments are calculated for the nation as a whole and for three economic zones in the west, central, and coastal regions of the country. Government expenditures that have the highest impact on poverty and growth include education, agricultural research and development, and rural infrastructure (roads, electricity, and telecommunications). Notably, spending on irrigation and anti-poverty loans had minimal impact. The report discusses the implications of these findings for setting future priorities for government investment. It also suggests avenues for future research and calls for a better understanding of how to improve the effectiveness of public resources.
This report will be of interest to professionals involved in rural poverty reduction, rural development, agricultural growth, food security, and public investment policy. |
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ABOUT THE AUTHORS
Shenggen Fan, a senior research fellow in IFPRI’s Environment and Production Technology Division, is developing a research program on rural public investment, growth, and poverty alleviation. He has also worked to develop IFPRI’s China program. Fan holds a Ph.D. from the University of Minnesota in applied economics.
Linxiu Zhang is a senior research fellow and deputy director of the Center for Chinese Agricultural Policy (CCAP) of the Chinese Academy of Sciences (CAS). Her main research focus is policy studies for rural development and poverty alleviation in China. She also collaborates with the World Bank, the UN system, and many CGIAR centers. Zhang received her Ph.D. from the University of Reading in agricultural economics.
Xiaobo Zhang is a postdoctoral fellow in IFPRI’s Environment and Production Technology Division. He conducts research on how public investments affect growth, poverty, inequality, and the environment in developing countries, particularly under the impact of globalization. Zhang holds a Ph.D. from Cornell University in applied economics and management.
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DOWNLOAD
The abstract and report are available for download in PDF format as an entire document or by chapter.
- Table of Contents, Tables, Figures, Foreword, Acknowledgements, and Summary
- Chapter 1: Introduction
- Chapter 2: Growth, Inequality, and Poverty
- Chapter 3: Public Capital and Investment
- Chapter 4: Conceptual Framework and Model
- Chapter 5: Data, Estimation, and Results
- Chapter 6: Conclusions
- Appendix A: Major Milestones in Reforming Chinese Agriculture
- Appendix B: Chronology of Poverty Alleviation Policies
- Appendix C: Provincial Data on Rural Public Spending
- Bibliography
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