INFRASTRUCTURE INVESTMENT IN RURAL CHINA: Is Quality Being Compromised during Quantity Expansion?

Good public infrastructure management means more than increasing the quantity of infrastructure stocks; it also involves improving the quality of infrastructure. This study seeks to document the quality of infrastructure projects in China’s villages and to measure whether or not quality has suffered as China’s investment effort has risen. Using data from 100 villages in China, we have found, using descriptive results, that in recent years both the quantity and the quality of infrastructure investments have increased over time. We also demonstrate that across space quantity and quality are positively correlated. We conclude that— at least in our sample villages—the quality of infrastructure is not being compromised for its quantity expansion during the entire sample period. JEL classification: H41; H54; H71