Infrastructure development, income inequality, and urban sustainability in the People's Republic of China

Arbeitspapier

This paper examines the relationship between infrastructure development and income inequality in urban People's Republic of China. Recent policies target reductions in income inequality while increasing sustainable urban development. Infrastructure investment plays a key role in achieving both goals, yet the effects of different infrastructures on income disparities at the city level remain undetermined. Using 10 city-level infrastructure indicators relating to sustainable urban development and city income inequality measures, calculated using the China Household Income Project (CHIP) Surveys, this study investigates the correlation between infrastructure and inequality from 2005 to 2013. The results indicate that wastewater treatment, domestic waste management, public green spaces, water efficiency, and residential power efficiency infrastructures were negatively correlated with income inequality with a lag of 2 or 3 years. Investment in these infrastructures might be associated with reductions in inequality ranging from 4% to 49%. Conversely, mass transit usage was positively correlated with income inequality both 2 and 3 years later. An increase in mass transit ridership of 20 trips per capita annually might be associated with a 1% rise in income inequality after 2 years. Increase in water supply coverage and Internet access were also positively correlated with rising inequality. Investment in these infrastructures might warrant further measures to ensure adequate distributional outcomes.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 713

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock ; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Fiscal Policies and Behavior of Economic Agents: General ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
• Subject: income inequality ; infrastructure ; PRC ; sustainable urban development

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mendoza, Octasiano M. Valerio
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/163208
• Last update: 10.03.2025, 11:41 AM CET