This paper investigates the relationships between caregivers' parenting knowledge and early childhood development, based on a survey conducted in 1715 rural households in 100 villages located in an undeveloped rural area of western China. The results find that, first, caregivers' parenting knowledge is positively and significantly associated with children's development outcomes, including cognitive, language, motor, and social-emotional development; second, caregivers' parental investments significantly mediate the link between parenting knowledge and early childhood development; third, in contrast with other parental investments, play materials (in terms of variety and quantity) and play activities in the households are the strongest mediators. Our findings might be informative for policy makers to design policies targeted to foster human capital formation in rural China.
Keywords: early childhood development; human capital; parental investments; parenting knowledge; rural China.