Central Government's Infrastructure Investment across Chinese Regions: A Dynamic Spatial Panel Data Approach

Xinye Zheng (), Fanghua Li, Shunfeng Song and Yihua Yu ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study employs spatial panel techniques to examine determinants of regional allocation of infrastructure investment made by the central government. Using a sample of 31 Chinese provinces over the 2001-2008 period, we derived four major empirical findings. First, there exist substantial spatial interactions of central government's investment across regions. Second, the central investment exhibits a highly persistent effect. Third, the central government attempts to balance equity and efficiency in its decision-making. Last, the political factor plays a significant role in the regional infrastructure investment.

Keywords: Infrastructure investment; efficiency-equity tradeoff; spatial interaction (search for similar items in EconPapers)
JEL-codes: C33 H54 R0 (search for similar items in EconPapers)
Date: 2013-10-06
New Economics Papers: this item is included in nep-cdm, nep-eff, nep-geo, nep-pbe, nep-tra, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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Journal Article: Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:50407

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