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China¡¯S Growth Story: The Role Of Physical And Social Infrastructure

Author

Listed:
  • PRAVAKAR SAHOO

    (Institute of Economic Growth, India)

  • RANJAN KUMAR DASH

    (Indian Council for Research on International Economic Relations)

  • GEETHANJALI NATARAJ

    (National Council of Applied Economic Research, India)

Abstract

The paper investigates the role of infrastructure in promoting economic growth in China using ARDL and GMM techniques for the period 1975 to 2007. In this context, an attempt is made to understand growth accounting equations to investigate the impact of infrastructure development on output. Overall, the results reveal that infrastructure stock, labour force, public and private investment play an important role in economic growth in China. More importantly, the study finds that Infrastructure development in China has significant positive contribution to growth than both private and public investment. Further, there is unidirectional causality from infrastructure development to output growth justifying China¡¯s high spending on infrastructure development since the early nineties. The experience from China suggests that it is necessary to design an economic policy that improves the physical infrastructure as well as human capital formation for sustainable economic growth in developing countries.

Suggested Citation

  • Pravakar Sahoo & Ranjan Kumar Dash & Geethanjali Nataraj, 2012. "China¡¯S Growth Story: The Role Of Physical And Social Infrastructure," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(1), pages 53-75, March.
    • Handle: RePEc:jed:journl:v:37:y:2012:i:1:p:53-75
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    5. Rahul Sarania, 2021. "Interactions among Infrastructure, Trade Openness, Foreign Direct Investments and Economic Growth in India," Journal of Infrastructure Development, India Development Foundation, vol. 13(1), pages 21-43, June.
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    9. Kanayo Ogujiuba & Ntombifuthi Mngometulu, 2022. "Does Social Investment Influence Poverty and Economic Growth in South Africa: A Cointegration Analysis?," Economies, MDPI, vol. 10(9), pages 1-23, September.
    10. Víctor Adame & Javier Alonso & Luisa Pérez & David Tuesta, 2017. "Infrastructure & economic growth from a meta-analysis approach: do all roads lead to Rome?," Working Papers 17/07, BBVA Bank, Economic Research Department.
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    14. Timilsina,Govinda R. & Hochman,Gal & Song,Ze, 2020. "Infrastructure, Economic Growth, and Poverty : A Review," Policy Research Working Paper Series 9258, The World Bank.
    15. 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.
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    18. Tengku Citra Nisa Farza & Andri Zainal, 2018. "How the Government Quality can Help Boosting Infrastructure Investment and Economic Growth? A Closer Look at Indonesia’s Practice," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(7), pages 542-553, July.
    19. repec:hal:spmain:info:hdl:2441/2ck6as9uec97fpod83b2hmfsvt is not listed on IDEAS
    20. Ignas Lukosevicius, 2020. "European Union Transport Infrastructure: Roads and Railways Subsectors Case," Eurasian Journal of Business and Management, Eurasian Publications, vol. 8(4), pages 305-318.
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    22. Samir Saidi & Sami Hammami, 2017. "Impact of Investments in Public Infrastructures on Economic Performance and Private Investment in Developing Countries: A Case Study for Tunisia," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(63), pages 126-146, March.

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    More about this item

    Keywords

    China; Infrastructure Development; Investment; Output Growth;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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