Infrastructure Investment and Inequality: Evidence from China
ABSTRACT This paper examines whether infrastructure investment can mitigate inequality using Chinese data. The findings indicate that increased infrastructure investment is related to a reduced urban–rural consumption gap. After establishing the primary effect, the analysis delves into exploring the...
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| Published in | Bulletin of economic research Vol. 77; no. 3; pp. 356 - 367 |
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| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
Oxford
Blackwell Publishing Ltd
01.07.2025
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| Subjects | |
| Online Access | Get full text |
| ISSN | 0307-3378 1467-8586 |
| DOI | 10.1111/boer.12493 |
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| Abstract | ABSTRACT
This paper examines whether infrastructure investment can mitigate inequality using Chinese data. The findings indicate that increased infrastructure investment is related to a reduced urban–rural consumption gap. After establishing the primary effect, the analysis delves into exploring the underlying mechanisms. Channel analyses unveil that improved infrastructure can impact the consumption gap by reducing the income gap and facilitating trade. Heterogeneity tests demonstrate that infrastructure investment has a more pronounced marginal effect on the consumption gap in central and western regions compared with eastern and northeastern areas. Additionally, the effect is more prominent in regions with larger income gaps. Overall, our findings suggest a substantial pro‐poor impact of infrastructure investment. |
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| AbstractList | This paper examines whether infrastructure investment can mitigate inequality using Chinese data. The findings indicate that increased infrastructure investment is related to a reduced urban–rural consumption gap. After establishing the primary effect, the analysis delves into exploring the underlying mechanisms. Channel analyses unveil that improved infrastructure can impact the consumption gap by reducing the income gap and facilitating trade. Heterogeneity tests demonstrate that infrastructure investment has a more pronounced marginal effect on the consumption gap in central and western regions compared with eastern and northeastern areas. Additionally, the effect is more prominent in regions with larger income gaps. Overall, our findings suggest a substantial pro‐poor impact of infrastructure investment. ABSTRACT This paper examines whether infrastructure investment can mitigate inequality using Chinese data. The findings indicate that increased infrastructure investment is related to a reduced urban–rural consumption gap. After establishing the primary effect, the analysis delves into exploring the underlying mechanisms. Channel analyses unveil that improved infrastructure can impact the consumption gap by reducing the income gap and facilitating trade. Heterogeneity tests demonstrate that infrastructure investment has a more pronounced marginal effect on the consumption gap in central and western regions compared with eastern and northeastern areas. Additionally, the effect is more prominent in regions with larger income gaps. Overall, our findings suggest a substantial pro‐poor impact of infrastructure investment. |
| Author | Hu, Jingxin Li, Tao |
| Author_xml | – sequence: 1 givenname: Jingxin orcidid: 0000-0003-1328-1051 surname: Hu fullname: Hu, Jingxin email: huj@uhd.edu organization: University of Houston‐Downtown – sequence: 2 givenname: Tao surname: Li fullname: Li, Tao organization: Chongqing University of Technology |
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This paper examines whether infrastructure investment can mitigate inequality using Chinese data. The findings indicate that increased infrastructure... This paper examines whether infrastructure investment can mitigate inequality using Chinese data. The findings indicate that increased infrastructure... |
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| SubjectTerms | Consumption consumption gap income gap Inequality Infrastructure Investments Rural areas Rural communities |
| Title | Infrastructure Investment and Inequality: Evidence from China |
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