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
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.
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