IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v10y2021i8p874-d618377.html
   My bibliography  Save this article

Does Transport Infrastructure Inequality Matter for Economic Growth? Evidence from China

Author

Listed:
  • Anyu Chen

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400045, China)

  • Yueran Li

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400045, China)

  • Kunhui Ye

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400045, China
    Research Center for Construction Economy and Management, Chongqing University, Chongqing 400044, China)

  • Tianyi Nie

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400045, China)

  • Rui Liu

    (Department of Construction and Real Estate, School of Civil Engineering, Southeast University, Nanjing 211189, China)

Abstract

Transport infrastructure (TI) plays a crucial role in socioeconomic development. The increase of TI inequality, an all-pervading phenomenon in both developed and developing countries, has been an obstacle to sustainable economic growth. The relationship between TI inequality and economic growth has attracted considerable interest over the past three decades. However, the relationship remains obscure, and people find it impossible to utilize to develop economies. This study collected a panel of empirical data from 1982 to 2015 from China to calculate the Gini coefficient and conduct the Granger causality test. The data analysis results show that TI inequality is not always conducive to economic growth. A softening TI inequality helps address the issues of uneven economic growth across regions in the long term. The short-term effects of improving TI inequality at the national level are reflected in the network effect. In addition, the “social filters” facilitate the region to absorb the economic benefits brought by the improvement of TI inequality. These findings offer a way to address the increase of TI inequality and shed light on the ways to improve transport investment from the perspective of economic growth.

Suggested Citation

  • Anyu Chen & Yueran Li & Kunhui Ye & Tianyi Nie & Rui Liu, 2021. "Does Transport Infrastructure Inequality Matter for Economic Growth? Evidence from China," Land, MDPI, vol. 10(8), pages 1-21, August.
  • Handle: RePEc:gam:jlands:v:10:y:2021:i:8:p:874-:d:618377
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/10/8/874/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2073-445X/10/8/874/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Webb, Calum & Bywaters, Paul & Scourfield, Jonathan & McCartan, Claire & Bunting, Lisa & Davidson, Gavin & Morris, Kate, 2020. "Untangling child welfare inequalities and the ‘Inverse Intervention Law’ in England," Children and Youth Services Review, Elsevier, vol. 111(C).
    2. Vickerman, Roger, 2018. "Can high-speed rail have a transformative effect on the economy?," Transport Policy, Elsevier, vol. 62(C), pages 31-37.
    3. Yang Chen & Nimesh Salike & Fushu Luan & Ming He, 2016. "Heterogeneous effects of inter- and intra-city transportation infrastructure on economic growth: Evidence from Chinese cities," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(3), pages 571-587.
    4. Inderst, Georg, 2016. "Infrastructure Investment, Private Finance, and Institutional Investors: Asia from a Global Perspective," ADBI Working Papers 555, Asian Development Bank Institute.
    5. Roger Vickerman, 2007. "Recent Evolution of Research into the Wider Economic Benefits of Transport Infrastructure Investments," OECD/ITF Joint Transport Research Centre Discussion Papers 2007/9, OECD Publishing.
    6. Sylvie Démurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao & Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," Asian Economic Papers, MIT Press, vol. 1(1), pages 146-197.
    7. Mahmoud Mahmoudzadeh & Somaye Sadeghi & Soraya Sadeghi, 2013. "Fiscal Spending and Crowding out Effect: A Comparison between Developed and Developing Countries," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 31-40, April.
    8. Jiwattanakulpaisarn, Piyapong & Noland, Robert B. & Graham, Daniel J., 2010. "Causal linkages between highways and sector-level employment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(4), pages 265-280, May.
    9. Yu, Nannan & de Roo, Gert & de Jong, Martin & Storm, Servaas, 2016. "Does the expansion of a motorway network lead to economic agglomeration? Evidence from China," Transport Policy, Elsevier, vol. 45(C), pages 218-227.
    10. Iacono, Michael & Levinson, David, 2016. "Mutual causality in road network growth and economic development," Transport Policy, Elsevier, vol. 45(C), pages 209-217.
    11. Jiang, Xiushan & He, Xiang & Zhang, Lei & Qin, Huanhuan & Shao, Fengru, 2017. "Multimodal transportation infrastructure investment and regional economic development: A structural equation modeling empirical analysis in China from 1986 to 2011," Transport Policy, Elsevier, vol. 54(C), pages 43-52.
    12. Vandenbulcke, Grégory & Steenberghen, Thérèse & Thomas, Isabelle, 2009. "Mapping accessibility in Belgium: a tool for land-use and transport planning?," Journal of Transport Geography, Elsevier, vol. 17(1), pages 39-53.
    13. Xubei Luo & Nong Zhu & Heng-fu Zou, 2014. "China's Lagging Region Development And Targeted Transportation Infrastructure Investments," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 157-200, May.
    14. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 143-143.
    15. Xiaosu Ye & Lie Ma & Kunhui Ye & Jiantao Chen & Qiu Xie, 2017. "Analysis of Regional Inequality from Sectoral Structure, Spatial Policy and Economic Development: A Case Study of Chongqing, China," Sustainability, MDPI, vol. 9(4), pages 1-17, April.
    16. Jetpan Wetwitoo & Hironori Kato, 2017. "Inter-regional transportation and economic productivity: a case study of regional agglomeration economies in Japan," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(2), pages 321-344, September.
    17. Beyazit, Eda, 2015. "Are wider economic impacts of transport infrastructures always beneficial? Impacts of the Istanbul Metro on the generation of spatio-economic inequalities," Journal of Transport Geography, Elsevier, vol. 45(C), pages 12-23.
    18. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
    19. Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
    20. Graham, Daniel J. & Gibbons, Stephen, 2019. "Quantifying Wider Economic Impacts of agglomeration for transport appraisal: Existing evidence and future directions," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    21. Ottaviano, Gianmarco & Thisse, Jacques-Francois, 2004. "Agglomeration and economic geography," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 58, pages 2563-2608, Elsevier.
    22. Banerjee, Abhijit & Duflo, Esther & Qian, Nancy, 2020. "On the road: Access to transportation infrastructure and economic growth in China," Journal of Development Economics, Elsevier, vol. 145(C).
    23. Bajar, Sumedha. & Rajeev, Meenakshi., 2015. "The impact of infrastructure provisioning on inequality : evidence from India," ILO Working Papers 994882713402676, International Labour Organization.
    24. Andres Rodriguez-Pose & Riccardo regstdcenzi, 2008. "Research and Development, Spillovers, Innovation Systems, and the Genesis of Regional Growth in Europe," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 51-67.
    25. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "Infrastructure and regional growth in the European Union," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 487-513, August.
    26. Yi, Yoojin & Kim, Euijune, 2018. "Spatial economic impact of road and railroad accessibility on manufacturing output: Inter-modal relationship between road and railroad," Journal of Transport Geography, Elsevier, vol. 66(C), pages 144-153.
    27. Pradhan, Rudra P. & Bagchi, Tapan P., 2013. "Effect of transportation infrastructure on economic growth in India: The VECM approach," Research in Transportation Economics, Elsevier, vol. 38(1), pages 139-148.
    28. Daniel Chatman & Robert Noland, 2011. "Do Public Transport Improvements Increase Agglomeration Economies? A Review of Literature and an Agenda for Research," Transport Reviews, Taylor & Francis Journals, vol. 31(6), pages 725-742.
    29. Duan, Liaoliao & Sun, Weizeng & Zheng, Siqi, 2020. "Transportation network and venture capital mobility: An analysis of air travel and high-speed rail in China," Journal of Transport Geography, Elsevier, vol. 88(C).
    30. Tong, Tingting & Yu, T. Edward, 2018. "Transportation and economic growth in China: A heterogeneous panel cointegration and causality analysis," Journal of Transport Geography, Elsevier, vol. 73(C), pages 120-130.
    31. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    32. David Canning & Peter Pedroni, 2008. "Infrastructure, Long‐Run Economic Growth And Causality Tests For Cointegrated Panels," Manchester School, University of Manchester, vol. 76(5), pages 504-527, September.
    33. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-115, February.
    34. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(2), pages 321-324.
    35. Krafft, Caroline & Alawode, Halimat, 2018. "Inequality of opportunity in higher education in the Middle East and North Africa," International Journal of Educational Development, Elsevier, vol. 62(C), pages 234-244.
    36. Ozbay, Kaan & Ozmen-Ertekin, Dilruba & Berechman, Joseph, 2007. "Contribution of transportation investments to county output," Transport Policy, Elsevier, vol. 14(4), pages 317-329, July.
    37. Cohen, Jeffrey P. & Paul, Catherine J. Morrison, 2005. "Agglomeration economies and industry location decisions: the impacts of spatial and industrial spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 215-237, May.
    38. Wang, Jiaoe & Jin, Fengjun & Mo, Huihui & Wang, Fahui, 2009. "Spatiotemporal evolution of China's railway network in the 20th century: An accessibility approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(8), pages 765-778, October.
    39. Antonio Ricci, Luca, 1999. "Economic geography and comparative advantage:: Agglomeration versus specialization," European Economic Review, Elsevier, vol. 43(2), pages 357-377, February.
    40. Cavallaro, Federico & Bruzzone, Francesco & Nocera, Silvio, 2020. "Spatial and social equity implications for High-Speed Railway lines in Northern Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 327-340.
    41. Tong, Tingting & Yu, Tun-Hsiang Edward & Cho, Seong-Hoon & Jensen, Kimberly & De La Torre Ugarte, Daniel, 2013. "Evaluating the spatial spillover effects of transportation infrastructure on agricultural output across the United States," Journal of Transport Geography, Elsevier, vol. 30(C), pages 47-55.
    42. Park, Jin Suk & Seo, Young-Joon & Ha, Min-Ho, 2019. "The role of maritime, land, and air transportation in economic growth: Panel evidence from OECD and non-OECD countries," Research in Transportation Economics, Elsevier, vol. 78(C).
    43. He, Dan & Yin, Qingmei & Zheng, Manxin & Gao, Peng, 2019. "Transport and regional economic integration: Evidence from the Chang-Zhu-Tan region in China," Transport Policy, Elsevier, vol. 79(C), pages 193-203.
    44. Lakshmanan, T.R., 2011. "The broader economic consequences of transport infrastructure investments," Journal of Transport Geography, Elsevier, vol. 19(1), pages 1-12.
    45. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
    46. Kim, Hyungtai & Ahn, Sanghoon & Ulfarsson, Gudmundur F., 2018. "Transportation infrastructure investment and the location of new manufacturing around South Korea's West Coast Expressway," Transport Policy, Elsevier, vol. 66(C), pages 146-154.
    47. Agbelie, Bismark R.D.K., 2014. "An empirical analysis of three econometric frameworks for evaluating economic impacts of transportation infrastructure expenditures across countries," Transport Policy, Elsevier, vol. 35(C), pages 304-310.
    48. Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, "undated". "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
    49. Junjie Hong & Zhaofang Chu & Qiang Wang, 2011. "Transport infrastructure and regional economic growth: evidence from China," Transportation, Springer, vol. 38(5), pages 737-752, September.
    50. Demurger, Sylvie, 2001. "Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 95-117, March.
    51. Pe'er, Aviad & Keil, Thomas, 2013. "Are all startups affected similarly by clusters? Agglomeration, competition, firm heterogeneity, and survival," Journal of Business Venturing, Elsevier, vol. 28(3), pages 354-372.
    52. Feitelson, Eran & Salomon, Ilan, 2000. "The implications of differential network flexibility for spatial structures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(6), pages 459-479, August.
    53. Zahra Dehghan Shabani & Sima Safaie, 2018. "Do transport infrastructure spillovers matter for economic growth? Evidence on road and railway transport infrastructure in Iranian provinces," Regional Science Policy & Practice, Wiley Blackwell, vol. 10(1), pages 49-63, March.
    54. Chakrabarti, Sandip, 2018. "Can highway development promote employment growth in India?," Transport Policy, Elsevier, vol. 69(C), pages 1-9.
    55. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jin, Wenwan & Zhu, Shengjun, 2023. "High-speed rail network and regional convergence/divergence in industrial structure," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    2. Alma Maciulyte-Sniukiene & Mindaugas Butkus, 2022. "Does Infrastructure Development Contribute to EU Countries’ Economic Growth?," Sustainability, MDPI, vol. 14(9), pages 1-40, May.
    3. Syed Abdul Rehman Khan & Ridwan Lanre Ibrahim & Abul Quasem Al-Amin & Zhang Yu, 2022. "An Ideology of Sustainability under Technological Revolution: Striving towards Sustainable Development," Sustainability, MDPI, vol. 14(8), pages 1-21, April.
    4. Pengxia Shen & Ping Yin & Bingjie Niu, 2023. "Assessing the Combined Effects of Transportation Infrastructure on Regional Tourism Development in China Using a Spatial Econometric Model (GWPR)," Land, MDPI, vol. 12(1), pages 1-18, January.
    5. Serban Raicu & Dorinela Costescu & Mihaela Popa & Vasile Dragu, 2021. "Dynamic Intercorrelations between Transport/Traffic Infrastructures and Territorial Systems: From Economic Growth to Sustainable Development," Sustainability, MDPI, vol. 13(21), pages 1-16, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sanwei He & Shan Yu & Lei Wang, 2021. "The nexus of transport infrastructure and economic output in city-level China: a heterogeneous panel causality analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 113-135, February.
    2. Qi, Guanqiu & Shi, Wenming & Lin, Kun-Chin & Yuen, Kum Fai & Xiao, Yi, 2020. "Spatial spillover effects of logistics infrastructure on regional development: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 96-114.
    3. Xiongbin Lin & Ian MacLachlan & Ting Ren & Feiyang Sun, 2019. "Quantifying economic effects of transportation investment considering spatiotemporal heterogeneity in China: a spatial panel data model perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 437-459, December.
    4. Park, Jin Suk & Seo, Young-Joon & Ha, Min-Ho, 2019. "The role of maritime, land, and air transportation in economic growth: Panel evidence from OECD and non-OECD countries," Research in Transportation Economics, Elsevier, vol. 78(C).
    5. Taotao Deng, 2013. "Impacts of Transport Infrastructure on Productivity and Economic Growth: Recent Advances and Research Challenges," Transport Reviews, Taylor & Francis Journals, vol. 33(6), pages 686-699, November.
    6. Piotr Rosik & Julia Wójcik, 2022. "Transport Infrastructure and Regional Development: A Survey of Literature on Wider Economic and Spatial Impacts," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    7. Elburz, Zeynep & Nijkamp, Peter & Pels, Eric, 2017. "Public infrastructure and regional growth: Lessons from meta-analysis," Journal of Transport Geography, Elsevier, vol. 58(C), pages 1-8.
    8. Baiqing Sun & Ramadhan Kauzen, 2023. "The Impact of Port Infrastructure and Economic Growth in Tanzania: Adopting a Structural Equation Modeling Approach," SAGE Open, , vol. 13(1), pages 21582440221, January.
    9. Magazzino, Cosimo & Giolli, Lorenzo, 2021. "The relationship among railway networks, energy consumption, and real added value in Italy. Evidence form ARDL and Wavelet analysis," Research in Transportation Economics, Elsevier, vol. 90(C).
    10. Konno, Akio & Kato, Hironori & Takeuchi, Wataru & Kiguchi, Riku, 2021. "Global evidence on productivity effects of road infrastructure incorporating spatial spillover effects," Transport Policy, Elsevier, vol. 103(C), pages 167-182.
    11. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    12. Özer, Mustafa & Canbay, Şerif & Kırca, Mustafa, 2021. "The impact of container transport on economic growth in Turkey: An ARDL bounds testing approach," Research in Transportation Economics, Elsevier, vol. 88(C).
    13. repec:esx:essedp:729 is not listed on IDEAS
    14. Sharif, Arshian & Shahbaz, Muhammad & Hille, Erik, 2019. "The Transportation-growth nexus in USA: Fresh insights from pre-post global crisis period," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 108-121.
    15. Liaqat Ali & Salim Khan & Syed Jamal Shah & Aman Ullah & Hina Ashraf & Mushtaq Ahmad & Abida Begum & Heesup Han & Antonio Ariza-Montes & Luis Araya-Castillo & Afed Ullah Khan & Muhammad Anas & Abdul M, 2021. "Road and Transportation Lead to Better Health and Sustainable Destination Development in Host Community: A Case of China Pakistan Economic Corridor (CPEC)," IJERPH, MDPI, vol. 18(23), pages 1-16, December.
    16. Liu, Tie-Ying, 2019. "Spatial structure convergence of China's transportation system," Research in Transportation Economics, Elsevier, vol. 78(C).
    17. Saba, Charles Shaaba, 2021. "Convergence and transition paths in transportation: Fresh insights from a club clustering algorithm," Transport Policy, Elsevier, vol. 112(C), pages 80-93.
    18. Sun, Yu & Cui, Yin, 2018. "Evaluating the coordinated development of economic, social and environmental benefits of urban public transportation infrastructure: Case study of four Chinese autonomous municipalities," Transport Policy, Elsevier, vol. 66(C), pages 116-126.
    19. Michał Myck & Mateusz Najsztub, 2020. "Implications of the Polish 1999 administrative reform for regional socio‐economic development," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(4), pages 559-579, October.
    20. Roberts, Mark & Deichmann, Uwe & Fingleton, Bernard & Shi, Tuo, 2010. "On the road to prosperity ? The economic geography of China's national expressway network," Policy Research Working Paper Series 5479, The World Bank.
    21. Pokharel, Ramesh & Bertolini, Luca & te Brömmelstroet, Marco & Acharya, Surya Raj, 2021. "Spatio-temporal evolution of cities and regional economic development in Nepal: Does transport infrastructure matter?," Journal of Transport Geography, Elsevier, vol. 90(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:10:y:2021:i:8:p:874-:d:618377. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.