Road to success? The effects of road toll on economic growth in China

Shuo Chen and Xiaobo He

Applied Economics Letters, 2015, vol. 22, issue 2, 158-162

Abstract: This article examines the effects of road tolls on economic growth in China. Using a provincial panel data and pool mean group method, we find that a 1% rise in road tolls leads to 0.005% and 0.03% reduction in GDP growth and GDP per capita, respectively. Moreover, it shows that although more road tolls may contribute to financing local transportation networks, they hinder inter-regional trade thus result in more serious market segmentation.

Date: 2015
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DOI: 10.1080/13504851.2014.931913

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