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Public Infrastructure as a Determinant of Intertemporal and Interregional Productive Performance in China

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  • Fu, Feng-Cheng

    (Chung-Hua Institute for Economic Research)

  • Vijverberg, Chu-Ping C.

    ()
    (Wichita State University)

  • Vijverberg, Wim P.

    ()
    (CUNY Graduate Center)

Abstract

This paper focuses on the question whether public infrastructure capital matters for labor productivity in China, both over time and across regions. It finds that public infrastructure is a significant determinant of variations in labor productivity across provinces, but the contribution of public capital to labor productivity growth over time is likely non-existing or even negative. These seemingly contradictory results are reconciled once we view the measured intertemporal effect as a short-run impact and the interregional effect as a longterm consequence of public infrastructure investment.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1019.

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Length: 39 pages
Date of creation: Feb 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1019

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Keywords: labor productivity; public infrastructure; China;

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