The impact of transportation infrastructure on the regional economic integration in China:A CGE analysis

Huijuan Li, Teng Hu, Xinyu Ma and Baodong Cheng

International Review of Economics & Finance, 2025, vol. 99, issue C

Abstract: Highway infrastructure is crucial for regional economic development, improving market accessibility, trade efficiency, and industrial growth. This study employs a county-level computable general equilibrium (CGE) model, adapted from the TERM model, to analyze the economic effects of highway expansion in Gansu Province. The results show that provincial highways significantly enhance intra-regional trade and local industry development, particularly in agriculture and manufacturing, while national highways contribute more to inter-regional trade and long-term industrial transformation. Policy recommendations emphasize coordinated investment strategies, ensuring alignment between national and provincial highways. Infrastructure planning should also consider regional economic structures and sector-specific needs, integrating smart transportation technologies to maximize economic benefits. Future research should extend this analysis to other provinces to compare transportation infrastructure effects across diverse economic regions.

Keywords: Transportation infrastructure; TERM model; Highway investment; County-level economy; Gansu province (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:99:y:2025:i:c:s1059056025002084

DOI: 10.1016/j.iref.2025.104045

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