Rural Public Goods Provision Under The Social Capital View

Public goods provision plays an important role in the productivity in rural China. Its reasonable and effective supply is conducive not only to reduce the burden on farm households and increase their income, stimulating rural consumption demand, but also affect social stability in rural area. China is a large agricultural country, the effective provision of public goods in rural areas directly contribution to the construction of a new socialist countrysideIn the provision and use of public goods process, it inevitably exists "free-rider" due to the Non-excludability of Public goods, besides it will become a dilemma of collective action in the end. Nowadays, Social capital theory attracts more and more literates for its analyzing and solving on the issue of dilemma of collective action successfully. However, there is few literatures to analyzing the provision of rural public goods from the perspective of social capital theory. In this paper, we discussed how to improve the provision of rural public goods under the social capital view. Meanwhile, using the trust game to measure a communication's social capital and building an experimental economics model to discuss the function of social capital in provision of rural public goods.This paper begins from a discussion on the research background, purpose and significance of this study. The theoretical analysis supports the view that social capital plays an important role in the provision of rural public goods, which is the key of Community-Based Resources Management.Secondly is the literature review, it mainly includes two parts. One is the social capital theory and its application in economic analysis. At the same time, it reviews some conclusion by the domestic and overseas researchers, including the measurement of social capital etc. The other part is a review of the literature on the provision of rural public goods, including the studies to provision of rural public goods under the social capital view byboth domestic and foreign researchers.The third part is the trust and its determinants. Describe the process of the trust game and compared some similar researches. By building an ordered probit model to discuss the function of social capital in provision of rural public goods.Finally, according to the main conclusions of this study, expected to some suggestions to the policy decision makers.