IDEAS home Printed from https://ideas.repec.org/a/wsi/serxxx/v69y2024i01ns0217590823500042.html
   My bibliography  Save this article

Can A New Infrastructure Plan Really Promote The Dual Circulation Strategy In China?

Author

Listed:
  • YING WANG

    (Institute of World Economy, Shanghai Academy of Social Sciences, P. R. China)

  • WENJIE PAN

    (��School of Economics, Xiamen University, P. R. China‡Institute of Financial Studies, Xining University, P. R. China)

  • WANHAO DONG

    (�School of Public Finance and Administration, Shanghai Lixin University of Accounting and Finance, P. R. China)

  • KAO-JEN LIN

    (�College of Business, Chung Yuan Christian University, ROC)

Abstract

This study aims to provide an answer to the question: “Can a new infrastructure plan promote the Dual Circulation Strategy in China?†Using provincial-level panel data for 31 provinces from 2005 to 2020, this study estimates a five-variant panel vector autoregressive model for the national level, eastern region, central region and western region, respectively, and conducts panel Granger-causality tests and impulse response analysis. The primary finding of this study is that there is a bi-directional Granger-causal relationship between the growth rate of new infrastructure investment and each of two variables representing internal circulation and each of two variables representing external circulation at the national level. According to the impulse response analysis, all variables representing either internal or external circulation have a positive impulse response to an increase in the growth rate of new infrastructure investment, except for trade openness. This study thus confirms that the new infrastructure investment can promote the Dual Circulation Strategy that has been a new guide for China as it moves toward a high-quality economic development stage.

Suggested Citation

  • Ying Wang & Wenjie Pan & Wanhao Dong & Kao-Jen Lin, 2024. "Can A New Infrastructure Plan Really Promote The Dual Circulation Strategy In China?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 69(01), pages 61-79, March.
    • Handle: RePEc:wsi:serxxx:v:69:y:2024:i:01:n:s0217590823500042
    DOI: 10.1142/S0217590823500042
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217590823500042
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217590823500042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    China; dual circulation strategy; new infrastructure; panel vector autoregressive model; panel Granger-causality;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:serxxx:v:69:y:2024:i:01:n:s0217590823500042. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ser/ser.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.