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Does Infrastructure Investment Remain an Effective Expansionary Tool? Based On the Green Economy Growth Perspective

Author

Listed:
  • Wenfeng Ge

    (Xinjiang University, China)

  • Xiaodong Yang

    (Xinjiang University, China)

  • Qiying Ran

    (Xinjiang University, China)

Abstract

In the post-COVID-19 pandemic era, boosting the economy through infrastructure investment has emerged as an imperative tool. Apart from coping with the downward pressure on the economy caused by the pandemic, governments are concerned about green economic growth. Using data for 30 provincial-level administrative regions in China, we examine the impact of infrastructure investment on green economic growth. Our findings are as follows. Infrastructure investment significantly inhibits green economic growth; we discover this outcome to be robust. The impact of infrastructure investment on green economic growth differs for different regions. The negative effect of infrastructure investment on green economic growth is substantial in the central-western region, but it is found to be statistically insignificant in the eastern regions.

Suggested Citation

  • Wenfeng Ge & Xiaodong Yang & Qiying Ran, 2024. "Does Infrastructure Investment Remain an Effective Expansionary Tool? Based On the Green Economy Growth Perspective," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 99-112, March.
    • Handle: RePEc:idn:journl:v:27:y:2024:i:1d:p:99-112
    DOI: https://doi.org/10.59091/2460-9196.2231
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    More about this item

    Keywords

    Post-epidemic era; Infrastructure investment; Green economic growth; Regional heterogeneity;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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