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Central Government's Infrastructure Investment across Chinese Regions: A Dynamic Spatial Panel Data Approach

  • Zheng, Xinye
  • Li, Fanghua
  • Song, Shunfeng
  • Yu, Yihua

This study employs spatial panel techniques to examine determinants of regional allocation of infrastructure investment made by the central government. Using a sample of 31 Chinese provinces over the 2001-2008 period, we derived four major empirical findings. First, there exist substantial spatial interactions of central government's investment across regions. Second, the central investment exhibits a highly persistent effect. Third, the central government attempts to balance equity and efficiency in its decision-making. Last, the political factor plays a significant role in the regional infrastructure investment.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50407.

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Date of creation: 06 Oct 2013
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Handle: RePEc:pra:mprapa:50407
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