Vulnerability and public service delivery in China from 1985 to 1999

This research focused on the determinants of vulnerability, as measured by the variable of expenditure on food consumption, by the quality of public service delivery as measured by three education variables (amount of students per teacher in primary education, amount of students per teacher in secondary education and amount of students per teacher in higher education) and two health variables (amount of doctors per bed and the amount of beds per hospital). To measure the impact of public service delivery on vulnerability we will use OLS regression, Fixed Effect, Two Stage Least Square (TSLS) and TSLS with Fixed Effect. The instrumental of the TSLS regressions are a group of political decentralization and inequality variables. Lags of respective one and two years are introduced as an additional robustness test. The conclusion is threefold: (i) the quality of primary education has a negative impact on vulnerability, probably due to the selection bias of children from poor families being taken out of school; (ii) the quality of the education service in higher education has a positive impact on vulnerability; and (iii) quality of health care has, at most, only a partial positive effect on reducing vulnerability.