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Public Infrastructure and Regional Economic Development: Evidence from China

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  • Weiguo Lu
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    Abstract

    This paper estimates an economic growth equation cross-sectionally for thirty provinces and cities in China for 1990–94 using an expanded production function which includes infrastructure variables as well as traditional variables such as labour, capital and export. Special care was taken in the selection of the infrastructure variables to avoid corruption of coefficients of these variables caused by a possible mutual influence between infrastructure investment and economic growth. The results show that transportation and telecommunication growth has had a large and positive impact on regional economic growth performance and infrastructure development should continue to be an important component of any policy package designed to promote balanced growth of China’s regional economies.

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    File URL: https://crawford.anu.edu.au/pdf/pep/pep-258.pdf
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    Bibliographic Info

    Paper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 258.

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    Length: 30 pages
    Date of creation: Aug 1996
    Date of revision:
    Handle: RePEc:csg:ajrcau:258

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    1. William Easterly & Sergio Rebelo, 1993. "Fiscal Policy and Economic Growth: An Empirical Investigation," NBER Working Papers 4499, National Bureau of Economic Research, Inc.
    2. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
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