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Waterway infrastructure, shipping endowment and regional economic geography: Evidence from the operation of the three gorges dam

Author

Listed:
  • Liang, Yuanbo
  • Fu, Jingyang
  • Teng, Xiao
  • Qu, Xi

Abstract

This study contributes to the literature on infrastructure and economic geography by exploring how improved shipping conditions influence regional development. Using a unique township-level dataset and leveraging the operation of the Three Gorges Dam (TGD) as a natural experiment, we show that enhanced waterborne transportation significantly promotes economic growth in port areas along the riverbanks. Mechanism analysis reveals that the TGD increased total freight volume by shifting freight composition toward waterborne transport, which induced water-transport-oriented industrial growth and generated larger gains for ports that initially had worse shipping conditions. Extension analysis shows that the regional economic hierarchy has strengthened after the operation of the TGD, suggesting that the reorganization of regional economic geography is likely associated with improvements in shipping endowments.

Suggested Citation

  • Liang, Yuanbo & Fu, Jingyang & Teng, Xiao & Qu, Xi, 2026. "Waterway infrastructure, shipping endowment and regional economic geography: Evidence from the operation of the three gorges dam," China Economic Review, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:chieco:v:95:y:2026:i:c:s1043951x25003001
    DOI: 10.1016/j.chieco.2025.102642
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