Transport Infrastructure Development and Economic Growth in China: Recent Evidence from Dynamic Panel System-GMM Analysis

Xiao Ke, Justin Lin (), Caihui Fu and Yong Wang
Additional contact information
Xiao Ke: National School of Development and INSE, Peking University, Beijing 100871, China
Caihui Fu: National School of Development and INSE, Peking University, Beijing 100871, China

Sustainability, 2020, vol. 12, issue 14, 1-22

Abstract: China’s growth miracle has been accompanied by a great leap forward in the development of transport infrastructure. This study examines and compares impacts from the quantity, quality, and structural aspects of transport infrastructure on regional economic growth in China as the country approaches an upper-middle income status. We also incorporate government’s development strategies into the framework for evaluating the growth effect of China’s transport infrastructure. Using a consistent and robust dynamic panel data system generalized method of moments (system-GMM) estimation for identification, we find strong evidence confirming that transport infrastructure contributes to regional economic growth in China during the period 2007–2015, as the country approaches its upper-middle income status. In particular, quality improvements in roads and railways and the structural upgrading of transport infrastructure significantly contribute to growth. However, we do not find that quantity expansion of the overall land transport network has a significant impact. Moreover, government development strategies that defy local comparative advantages not only detract from the growth rate but also potentially restrict the contribution of transport infrastructure. Lastly, the regional heterogeneity for Western China may differ across transport modes, particularly with respect to goods versus passenger transport and roadways versus railways.

Keywords: transport infrastructure; quality; structure; economic development level; development strategy; dynamic panel system-GMM (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/14/5618/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/14/5618/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:14:p:5618-:d:383739

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().