Rural Infrastructure and China’s Inclusive Growth

Zhang Xun (张勋) and Wan Guanghua (万广华)

School of Statistics, Beijing Normal University, Beijing, China 2 Research Institute for Indian Ocean Economics, Yunnan University of Finance and Economics, Kunming, China
‘Asian Development Bank Institute, Tokyo, Japan
Abstract: This paper for the first time proposes an empirical framework for inclusive
growth, under which policy :s- efficiency and distributive impacts can both be assessed.
This paper applies this framework to China :s- rural infrastructure and a large sample of
individual-level data, providing estimates of growth and distributive impacts of physical
infrastructures of telephone and tap water in rural China. They all are found to promote
rural income growth, helping narrow the rural-urban gap in China. More importantly, the
poorer gained more than the richer from these infrastructures, implying benign distributive
effects. This paper sheds light on the positive and important role in which infrastructure
plays to promote inclusive growth in rural China.
Keywords: inclusive growth, infrastructure, growth effect, distribution effect, inequality
JEL Classification: D31, H52, H54

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