Public investment, social services and productivity of Chinese household farms

This article examines the impact of villiage-sponsored infrastructural investment and social services on the productivity of Chinese farm households, using detailed farm-level data for the period 1986-90, The main findings are that the public facilities and services provided by village collectives augmented productivity growth of farm households, and that the expenditures on public good activities in the sample villages were below the optimal level. The problems of under-investment in public projects were particularly acute in low-income villages.