Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach

Xinye Zheng (), Fanghua Li, Shunfeng Song and Yihua Yu ()

China Economic Review, 2013, vol. 27, issue C, 264-276

Abstract: 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.

Keywords: Infrastructure investment; Efficiency-equity tradeoff; Spatial interaction (search for similar items in EconPapers)
JEL-codes: C33 H54 R0 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Working Paper: Central Government's Infrastructure Investment across Chinese Regions: A Dynamic Spatial Panel Data Approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:27:y:2013:i:c:p:264-276

DOI: 10.1016/j.chieco.2012.12.006

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