Public Infrastructure as a Determinant of Intertemporal and Interregional Productive Performance in China

Wim Vijverberg, Chu-Ping Vijverberg and Feng-Cheng Fu

Working Papers from eSocialSciences

Abstract: This paper focuses on the question whether public infrastructure capital matters for labor productivity in China, both over time and across regions. It finds that public infrastructure is a significant determinant of variations in labor productivity across provinces, but the contribution of public capital to labor productivity growth over time is likely non-existing or even negative. These seemingly contradictory results are reconciled once we view the measured intertemporal effect as a short-run impact and the interregional effect as a longterm consequence of public infrastructure investment.

Keywords: China; public infrastructure; labor productivity; infrastructure investment; centralized system; Cost and Profit Function Models; productivity growth (search for similar items in EconPapers)
Date: 2016-01
Note: Institutional Papers
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Related works:
Working Paper: Public Infrastructure as a Determinant of Intertemporal and Interregional Productive Performance in China (2004)
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