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Rural infrastructure and poverty in China
Xiaodi Qin1, Haitao Wu1, Tiecheng Shan1
1School of Business Administration, Zhongnan University of Economics and Law, Wuhan, China.
Plos One
|June 9, 2022
Summary
Irrigation and drainage infrastructure effectively reduces poverty. Rural transportation infrastructure has mixed effects, potentially worsening poverty through rural hollowing but also aiding poverty reduction via economic growth.
Area of Science:
- Agricultural Economics
- Development Economics
- Rural Sociology
Background:
- Poverty reduction is a key development goal.
- Infrastructure plays a critical role in rural development.
- Understanding the nuanced impacts of different infrastructure types is essential.
Purpose of the Study:
- To develop a theoretical framework on how irrigation, drainage, and rural transportation infrastructure influence poverty.
- To empirically assess the impact of these infrastructures on poverty in China.
- To explore the mediating mechanisms through which rural infrastructure affects poverty.
Main Methods:
- Utilized panel data from 31 Chinese provinces (2002-2017).
- Employed basic and continuous difference-in-differences (DID) models.
- Applied mediating effect models to analyze influence mechanisms.
Main Results:
- Irrigation and drainage infrastructure demonstrated a direct poverty-reducing effect.
- Rural transportation infrastructure exhibited dual impacts: exacerbating poverty via rural hollowing while simultaneously promoting poverty reduction through economic stimulation.
- The net effect of rural transportation infrastructure on poverty was found to be offsetting.
Conclusions:
- Investment in irrigation and drainage infrastructure is a direct strategy for poverty alleviation.
- Rural transportation infrastructure's impact on poverty is complex and requires careful consideration of both direct and indirect effects.
- Policy interventions should balance the benefits of transportation infrastructure with potential negative consequences like rural hollowing.
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