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Central Government's Infrastructure Investment across Chinese Regions: A Dynamic Spatial Panel Data Approach

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  • Zheng, Xinye
  • Li, Fanghua
  • Song, Shunfeng
  • Yu, Yihua

Abstract

This study employs spatial panel techniques to examine determinants of regional allocation of infrastructure investment made by the central government. Using a sample of 31 Chinese provinces over the 2001-2008 period, we derived four major empirical findings. First, there exist substantial spatial interactions of central government's investment across regions. Second, the central investment exhibits a highly persistent effect. Third, the central government attempts to balance equity and efficiency in its decision-making. Last, the political factor plays a significant role in the regional infrastructure investment.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50407.

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Date of creation: 06 Oct 2013
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Handle: RePEc:pra:mprapa:50407

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Keywords: Infrastructure investment; efficiency-equity tradeoff; spatial interaction;

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Cited by:
  1. Mototsugu Fukushige & Yingxin Shi, 2013. "Intergovernmental Fiscal Relationships in China: A Simple Model Based on the Nonsymmetric Nash Solution," Discussion Papers in Economics and Business 13-21, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  2. Zheng, Xinye & Yu, Yihua & Wang, Jing & Deng, Huihui, 2013. "Identifying the determinants and spatial nexus of provincial carbon intensity in China: A dynamic spatial panel approach," MPRA Paper 56088, University Library of Munich, Germany.
  3. Yingxin Shi & Mototsugu Fukushige, 2013. "Long-Run Fiscal Multiplier for Autonomous Prefectures in China," Discussion Papers in Economics and Business 13-10, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).

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