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Public Infrastructure as a Determinant of Intertemporal and Interregional Productive Performance in China

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Listed:
  • Wim Vijverberg
  • Chu-Ping Vijverberg
  • Feng-Cheng Fu

Abstract

This paper focuses on the question whether public infrastructure capital matters for labor productivity in China, both over time and across regions. It finds that public infrastructure is a significant determinant of variations in labor productivity across provinces, but the contribution of public capital to labor productivity growth over time is likely non-existing or even negative. These seemingly contradictory results are reconciled once we view the measured intertemporal effect as a short-run impact and the interregional effect as a longterm consequence of public infrastructure investment.

Suggested Citation

  • Wim Vijverberg & Chu-Ping Vijverberg & Feng-Cheng Fu, 2016. "Public Infrastructure as a Determinant of Intertemporal and Interregional Productive Performance in China," Working Papers id:8418, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:8418
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    More about this item

    Keywords

    China; public infrastructure; labor productivity; infrastructure investment; centralized system; Cost and Profit Function Models; productivity growth;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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