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Public Infrastructure and Regional Economic Development: Evidence from China

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  • Weiguo Lu

Abstract

This paper estimates an economic growth equation cross-sectionally for thirty provinces and cities in China for 1990–94 using an expanded production function which includes infrastructure variables as well as traditional variables such as labour, capital and export. Special care was taken in the selection of the infrastructure variables to avoid corruption of coefficients of these variables caused by a possible mutual influence between infrastructure investment and economic growth. The results show that transportation and telecommunication growth has had a large and positive impact on regional economic growth performance and infrastructure development should continue to be an important component of any policy package designed to promote balanced growth of China’s regional economies.

Suggested Citation

  • Weiguo Lu, 1996. "Public Infrastructure and Regional Economic Development: Evidence from China," Asia Pacific Economic Papers 258, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:csg:ajrcau:258
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    File URL: https://crawford.anu.edu.au/pdf/pep/pep-258.pdf
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    References listed on IDEAS

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    1. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
    2. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    3. Kevin T. Duffy-Deno & Randall W. Eberts, 1996. "Public Infrastructure and Regional Economic Development: A Simultaneous Equations Approach," Book chapters authored by Upjohn Institute researchers, in: Niles Hansen & Kenneth J. Button & Peter Nijkamp (ed.),Regional Policy and Regional Integration, pages 295-309, W.E. Upjohn Institute for Employment Research.
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    Cited by:

    1. Víctor Adame & Javier Alonso & Luisa Pérez & David Tuesta, 2017. "Infrastructure & economic growth from a meta-analysis approach: do all roads lead to Rome?," Working Papers 17/07, BBVA Bank, Economic Research Department.
    2. Morais, Artur Carlos & Aragão, Joaquim Jose Guilherme & Yamashita, Yaeko & Orrico, Rômulo Dante & de Freitas Dourado, Anisio Brasileiro, 2014. "Analysing the fiscal sustainability of transit investment projects: The case of the metropolitan railway of Brasília," Research in Transportation Economics, Elsevier, vol. 48(C), pages 422-428.
    3. Huiying Gao & Yu Zhang & Guangquan Li, 2024. "Does improvement of railway network promote urban economic growth? evidence from Northeast China," PLOS ONE, Public Library of Science, vol. 19(10), pages 1-20, October.

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    More about this item

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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