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Transportation infrastructure and rural development in China

Author

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  • Zhiyang Wang
  • Sizhong Sun

Abstract

Purpose - The infrastructure investment is one important source of economic growth in China in the past three decades. However it is not clear to what extent such investment affects development in rural area. The purpose of this paper is to explore this impact both conceptually and quantitatively, and draw policy implications from the empirical exercise. Design/methodology/approach - The authors first describe the conceptual link between the transportation infrastructure and rural development, which motivates the empirical model. Then by utilizing an autoregressive distributed lag model, the authors estimate both the short- and long-run impacts of the transportation infrastructure on rural development, in terms of cereal yield and per capita net income of rural households. Findings - The authors find that investment in transportation infrastructure positively affects rural development in China. In terms of cereal yield, a 1 percent increase in the road infrastructure (road length) leads to around 0.05 percent increase in cereal yield in the short-, and around 0.19 percent increase in the long-run. In terms of the per capita net income of rural households, a 1 percent increase in the road infrastructure results in around 0.14 percent increase in the short-, and its long-run impact is not statistically significant. The positive impacts lend supports to promote investment in the transportation infrastructure. To this end, in addition to the government funding, the participation of private capital can also be promoted through a number of channels, such as the build-operate-transfer, public-private partnership, and establishment of infrastructure investment bank. Originality/value - This study evaluates the impacts of transportation infrastructure on rural development in China. Despite of the importance of infrastructure and rural development, there is a lack of study on the interaction between them. This paper intends to fill in this gap. In addition, implications drawn in this exercise can benefit policy makers not only in China, but also in other developing countries.

Suggested Citation

  • Zhiyang Wang & Sizhong Sun, 2016. "Transportation infrastructure and rural development in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 8(3), pages 516-525, September.
    • Handle: RePEc:eme:caerpp:v:8:y:2016:i:3:p:516-525
    DOI: 10.1108/CAER-09-2015-0115
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    Citations

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    Cited by:

    1. Zehua Wang & Fachao Liang & Sheng-Hau Lin, 2023. "Can socially sustainable development be achieved through homestead withdrawal? A hybrid multiple-attributes decision analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-18, December.
    2. Lu, Haiyan & Zhao, Pengjun & Hu, Haoyu & Zeng, Liangen & Wu, Kai Sheng & Lv, Di, 2022. "Transport infrastructure and urban-rural income disparity: A municipal-level analysis in China," Journal of Transport Geography, Elsevier, vol. 99(C).
    3. Deyou Chen & Lei Wang & Tao Su & Youtao Zhang, 2018. "Canonical Correlation Analysis Between Residents’ Living Standards and Community Management Service Levels in Rural Areas: An Empirical Analysis Based on Municipal Data in Anhui Province," Computational Economics, Springer;Society for Computational Economics, vol. 52(4), pages 1053-1068, December.
    4. Qin Li & Shuangning Lv & Jingya Cui & Dongchen Hou & Yijun Liu & Wenlong Li, 2024. "Sustainability Constraints on Rural Road Infrastructure," Sustainability, MDPI, vol. 16(16), pages 1-15, August.
    5. Xinhai Lu & Jiao Hou & Yifeng Tang & Ting Wang & Tianyi Li & Xupeng Zhang, 2022. "Evaluating the Impact of the Highway Infrastructure Construction and the Threshold Effect on Cultivated Land Use Efficiency: Evidence from Chinese Provincial Panel Data," Land, MDPI, vol. 11(7), pages 1-20, July.
    6. Meseret Chanieabate & Hai He & Chuyue Guo & Betelhem Abrahamgeremew & Yuanji Huang, 2023. "Examining the Relationship between Transportation Infrastructure, Urbanization Level and Rural-Urban Income Gap in China," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    7. Lu, Haiyan & Zhao, Pengjun & Hu, Haoyu & Yan, Jie & Chen, Xiaoping, 2023. "Exploring the heterogeneous impact of road infrastructure on rural residents’ income: Evidence from nationwide panel data in China," Transport Policy, Elsevier, vol. 134(C), pages 155-166.
    8. Shahid Hussain & Fangwei Zhu & Zaigham Ali & Xiaohang Xu, 2017. "Rural Residents’ Perception of Construction Project Delays in Pakistan," Sustainability, MDPI, vol. 9(11), pages 1-16, November.
    9. Tong, Tingting & Yu, T. Edward, 2018. "Transportation and economic growth in China: A heterogeneous panel cointegration and causality analysis," Journal of Transport Geography, Elsevier, vol. 73(C), pages 120-130.
    10. Chen Yu & Theofanis P. Mamuneas, 2021. "The Effect of Public Infrastructure on Cost Structure and Performance of Chinese Provinces," Asian Economic Journal, East Asian Economic Association, vol. 35(1), pages 3-26, March.
    11. Yuling Fang & Shixin Wu & Guanyu Hou & Weiyi Long, 2024. "Spatiotemporal Changes and Driving Mechanisms of Cropland Reclamation and Abandonment in Xinjiang," Land, MDPI, vol. 13(9), pages 1-19, September.
    12. Yang Zhou & Chunyang Tong & Yongsheng Wang, 2022. "Road construction, economic growth, and poverty alleviation in China," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1306-1332, September.

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