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Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach

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  • Zheng, Xinye
  • Li, Fanghua
  • Song, Shunfeng
  • Yu, Yihua

Abstract

This study employs spatial panel techniques to examine determinants of regional allocation of infrastructure investment made by the central government. Using a sample of 31 Chinese provinces over the 2001–2008 period, we derived four major empirical findings. First, there exist substantial spatial interactions of central government's investment across regions. Second, the central investment exhibits a highly persistent effect. Third, the central government attempts to balance equity and efficiency in its decision-making. Last, the political factor plays a significant role in the regional infrastructure investment.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 27 (2013)
Issue (Month): C ()
Pages: 264-276

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Handle: RePEc:eee:chieco:v:27:y:2013:i:c:p:264-276

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Web page: http://www.elsevier.com/locate/chieco

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Keywords: Infrastructure investment; Efficiency-equity tradeoff; Spatial interaction;

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Cited by:
  1. Zheng, Xinye & Yu, Yihua & Wang, Jing & Deng, Huihui, 2013. "Identifying the determinants and spatial nexus of provincial carbon intensity in China: A dynamic spatial panel approach," MPRA Paper 56088, University Library of Munich, Germany.
  2. Mototsugu Fukushige & Yingxin Shi, 2013. "Intergovernmental Fiscal Relationships in China: A Simple Model Based on the Nonsymmetric Nash Solution," Discussion Papers in Economics and Business 13-21, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  3. Yingxin Shi & Mototsugu Fukushige, 2013. "Long-Run Fiscal Multiplier for Autonomous Prefectures in China," Discussion Papers in Economics and Business 13-10, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).

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