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The Distributional Impacts of Transportation Networks in China

Author

Listed:
  • Ma, Lin

    (Singapore Management University)

  • Yang, Tang

    (Nanyang Technological University)

Abstract

This paper evaluates the distributional impacts of transportation networks in China. We show that the quality of roads and railroads vary substantially over time and space, and ignoring these variations biases the estimates of travel time. To account for quality differences, we construct a new panel dataset and approximate quality using the design speed of roads and railroads that varies by vintage, class, and terrain at the pixel level. We then build a dynamic spatial general equilibrium model that allows for multiple modes and routes of transportation and forward-looking migration decision. We find aggregate welfare gain and less spatial income inequality led by expanding transportation network.

Suggested Citation

  • Ma, Lin & Yang, Tang, 2022. "The Distributional Impacts of Transportation Networks in China," Economics and Statistics Working Papers 9-2022, Singapore Management University, School of Economics.
    • Handle: RePEc:ris:smuesw:2022_009
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    Keywords

    regional trade; migration; welfare; economic geography;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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