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Transport Infrastructure, Growth, and Poverty Alleviation: Empirical Analysis of China

Author

Listed:
  • Wei Zou

    (Institute for Advanced Study, School of Economics and Management)

  • Fen Zhang

    (Institute for Advanced Study, School of Economics and Management)

  • Ziyin Zhuang

    (Institute for Advanced Study, School of Economics and Management)

  • Hairong Song

    (Institute for Advanced Study, School of Economics and Management)

Abstract

Using panel data of 1994-2002, as well as time series data of 1978-2002 in China, this paper examines the effect of transport infrastructure on economic growth and poverty alleviation, and finds out that the higher growth level in East and Central China comes, to a great extent, from better transport infrastructure. It turns out by Granger-test that transport investment especially that on roads constitutes a source of growth, but not vice versa. We compare the different effect of railways and roads in different regions, and find out that public investment on road construction in poor areas is of drastic importance to growth and poverty alleviation, and therefore should be a priority of policy choice.

Suggested Citation

  • Wei Zou & Fen Zhang & Ziyin Zhuang & Hairong Song, 2008. "Transport Infrastructure, Growth, and Poverty Alleviation: Empirical Analysis of China," Annals of Economics and Finance, Society for AEF, vol. 9(2), pages 345-371, November.
  • Handle: RePEc:cuf:journl:y:2008:v:9:i:2:p:345-371
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Wang, Chan, 2012. "A very preliminary survey on growth and development," MPRA Paper 39037, University Library of Munich, Germany.
    2. Li, Yan & DaCosta, Maria N., 2013. "Transportation and income inequality in China: 1978–2007," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 56-71.
    3. Aswini Kumar Mishra & Kunapareddy Narendra & Bibhu Prasad Kar, 2013. "Growth And Infrastructure Investment In India: Achievements, Challenges, And Opportunities," Economic Annals, Faculty of Economics, University of Belgrade, vol. 58(196), pages 51-70, January –.
    4. Taotao Deng & Shuai Shao & Lili Yang & Xueliang Zhang, 2014. "Has the transport-led economic growth effect reached a peak in China? A panel threshold regression approach," Transportation, Springer, pages 567-587.
    5. repec:eee:trapol:v:61:y:2018:i:c:p:17-25 is not listed on IDEAS
    6. Cosmin Enache, 2009. "Fiscal Policy And Economic Growth In Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, pages 1-50.

    More about this item

    Keywords

    Transport infrastructure; Economic growth; Poverty alleviation;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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