Abstract

Village collectives are important providers of rural public goods in developing countries with dual urban-rural structures. However, few studies have investigated the relationship between the public goods provided by village collectives and the subjective well-being (SWB) of rural residents. This study aims to fill that gap. Based on the 2014 round of China Family Panel Studies (CFPS) survey data, this study estimates an ordered logit model of a SWB function to examine the role of the public goods provided by village collectives. The results indicate that village collectives’ provision of public goods has a significantly positive effect on the SWB of rural residents by promoting the dual growth of household income and consumption. Village collectives’ public expenditures on production, education, and public services also positively affect the SWB of rural residents. The public goods provided by village collectives have a significantly positive effect on the SWB of young and middle-aged rural residents but not on the SWB of elderly rural residents. Finally, rural residents with low levels of education and health obtain more SWB effects than do residents with high levels.

Highlights

  • In 2017, in accordance with the requirements for a "prosperous industry, livable ecology, local civilization, effective governance, and rich life", China implemented a rural revitalization strategy, aimed at improving the policy system for the integrated development of urban and rural areas, as well as accelerating the modernization of China’s agriculture and countryside

  • Further analyses find that three types of village collective public expenditure—production investment, education investment, and public service expenditure—can improve the subjective well-being (SWB) of rural residents

  • Few studies have examined how the public goods provided by village collectives affect rural residents’ SWB, even though SWB provides a measure of true utility and reflects the actual effects of rural public goods provision

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Summary

Introduction

In 2017, in accordance with the requirements for a "prosperous industry, livable ecology, local civilization, effective governance, and rich life", China implemented a rural revitalization strategy, aimed at improving the policy system for the integrated development of urban and rural areas, as well as accelerating the modernization of China’s agriculture and countryside. The fundamental goal of China’s rural revitalization strategy is to enhance rural sustainability, which is important in China and in other developing countries. Many developing countries, including China, are facing important challenges in their economic and social development. The most important issue is resolving the contradiction between people’s growing need for a better life and unbalanced and inadequate national development, especially urbanrural development. The ultimate goal of the rural revitalization strategy is to improve rural residents’ lives.

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