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Is transportation improving urbanization in China?

Tie-Ying Liu and Chi-Wei Su

Socio-Economic Planning Sciences, 2021, vol. 77, issue C

Abstract: This study applies the rolling-window causality test to analyze the interaction between transportation infrastructure and urbanization in China. Our results obviously support search-matching theory in that transportation infrastructure exerts positive effects on urbanization in sub-sample periods. Urbanization does not Granger cause transportation infrastructure development except for the 1977–1980 period, when urbanization exerted negative effects on transportation infrastructure. The transportation structure is inadequate, and rational allocation of transportation resources is needed to improve the level of urbanization. This means that transportation improves urbanization due to government investment and regional integration. Development of transportation infrastructure has been rapid, which improved urbanization during the Great Cultural Revolution period. Urbanization urgently needs to keep up with the development of traffic infrastructure construction by adding to traffic investment. Transportation infrastructure requires whole planning, a unified layout, and rational adjustment of the transportation structure.

Keywords: Transportation infrastructure; Urbanization; Rolling-window test; Time-varying causality (search for similar items in EconPapers)
JEL-codes: C22 L91 P25 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceps:v:77:y:2021:i:c:s0038012121000264

DOI: 10.1016/j.seps.2021.101034

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