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Transport Infrastructure, Growth, and Poverty Alleviation: Empirical Analysis of China

Author

Listed:
  • Wei Zou

    (Institute for Advanced Study, School of Economics and Management)

  • Fen Zhang

    (Institute for Advanced Study, School of Economics and Management)

  • Ziyin Zhuang

    (Institute for Advanced Study, School of Economics and Management)

  • Hairong Song

    (Institute for Advanced Study, School of Economics and Management)

Abstract

Using panel data of 1994-2002, as well as time series data of 1978-2002 in China, this paper examines the effect of transport infrastructure on economic growth and poverty alleviation, and finds out that the higher growth level in East and Central China comes, to a great extent, from better transport infrastructure. It turns out by Granger-test that transport investment especially that on roads constitutes a source of growth, but not vice versa. We compare the different effect of railways and roads in different regions, and find out that public investment on road construction in poor areas is of drastic importance to growth and poverty alleviation, and therefore should be a priority of policy choice.

Suggested Citation

  • Wei Zou & Fen Zhang & Ziyin Zhuang & Hairong Song, 2008. "Transport Infrastructure, Growth, and Poverty Alleviation: Empirical Analysis of China," Annals of Economics and Finance, Society for AEF, vol. 9(2), pages 345-371, November.
    • Handle: RePEc:cuf:journl:y:2008:v:9:i:2:p:345-371
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    2. Sun, Yu & Cui, Yin, 2018. "Evaluating the coordinated development of economic, social and environmental benefits of urban public transportation infrastructure: Case study of four Chinese autonomous municipalities," Transport Policy, Elsevier, vol. 66(C), pages 116-126.
    3. Qin, Xiaodi & Wu, Haitao, 2021. "Rural Infrastructure and Poverty in China," 2021 Conference, August 17-31, 2021, Virtual 314996, International Association of Agricultural Economists.
    4. Wang, Chan, 2012. "A very preliminary survey on growth and development," MPRA Paper 39037, University Library of Munich, Germany.
    5. Taotao Deng & Shuai Shao & Lili Yang & Xueliang Zhang, 2014. "Has the transport-led economic growth effect reached a peak in China? A panel threshold regression approach," Transportation, Springer, vol. 41(3), pages 567-587, May.
    6. Tong, Tingting & Yu, T. Edward, 2018. "Transportation and economic growth in China: A heterogeneous panel cointegration and causality analysis," Journal of Transport Geography, Elsevier, vol. 73(C), pages 120-130.
    7. Kwang-Jing Yii & Kai-Ying Bee & Wei-Yong Cheam & Yee-Lee Chong & Ching-Mei Lee, 2018. "Is Transportation Infrastructure Important to the One Belt One Road (OBOR) Initiative? Empirical Evidence from the Selected Asian Countries," Sustainability, MDPI, vol. 10(11), pages 1-18, November.
    8. Jing Fan & Hironori Kato & Xinghua Liu & Ye Li & Changxi Ma & Liang Zhou & Mingzhang Liang, 2022. "High-Speed Railway Network Development, Inter-County Accessibility Improvements, and Regional Poverty Alleviation: Evidence from China," Land, MDPI, vol. 11(10), pages 1-22, October.
    9. Li, Hongbo & Liu, Yali & Peng, Kaili, 2018. "Characterizing the relationship between road infrastructure and local economy using structural equation modeling," Transport Policy, Elsevier, vol. 61(C), pages 17-25.
    10. Lu, Haiyan & Zhao, Pengjun & Hu, Haoyu & Yan, Jie & Chen, Xiaoping, 2023. "Exploring the heterogeneous impact of road infrastructure on rural residents’ income: Evidence from nationwide panel data in China," Transport Policy, Elsevier, vol. 134(C), pages 155-166.
    11. Rimsha Irshad & Mehr-un-Nisa & Naghmana Ghafoor, 2023. "Infrastructure and Economic Growth: Evidence from Lower Middle-Income Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 161-179, March.
    12. Lu, Haiyan & Zhao, Pengjun & Hu, Haoyu & Zeng, Liangen & Wu, Kai Sheng & Lv, Di, 2022. "Transport infrastructure and urban-rural income disparity: A municipal-level analysis in China," Journal of Transport Geography, Elsevier, vol. 99(C).
    13. Elburz, Zeynep & Nijkamp, Peter & Pels, Eric, 2017. "Public infrastructure and regional growth: Lessons from meta-analysis," Journal of Transport Geography, Elsevier, vol. 58(C), pages 1-8.
    14. Wang, Chao & Lim, Ming K. & Zhang, Xinyi & Zhao, Longfeng & Lee, Paul Tae-Woo, 2020. "Railway and road infrastructure in the Belt and Road Initiative countries: Estimating the impact of transport infrastructure on economic growth," Transportation Research Part A: Policy and Practice, Elsevier, vol. 134(C), pages 288-307.
    15. Sedef Sen & Tugba Yilmaz, 2023. "An Econometric Analysis on the Relationship between Infrastructure and Economic Growth," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(2), pages 361-393, July.
    16. Li, Yan & DaCosta, Maria N., 2013. "Transportation and income inequality in China: 1978–2007," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 56-71.
    17. Jiayuan Cai & Chunchun Huang & Zilin Deng & Linna Li, 2023. "Transport Accessibility and Poverty Alleviation in Guizhou Province of China: Spatiotemporal Pattern and Impact Analysis," Sustainability, MDPI, vol. 15(4), pages 1-23, February.
    18. Timilsina,Govinda R. & Hochman,Gal & Song,Ze, 2020. "Infrastructure, Economic Growth, and Poverty : A Review," Policy Research Working Paper Series 9258, The World Bank.
    19. Iris Claus & Les Oxley & Chen Wang & Guanghua Wan & Dan Yang, 2014. "Income Inequality In The People'S Republic Of China: Trends, Determinants, And Proposed Remedies," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 686-708, September.
    20. Aswini Kumar Mishra & Kunapareddy Narendra & Bibhu Prasad Kar, 2013. "Growth And Infrastructure Investment In India: Achievements, Challenges, And Opportunities," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(196), pages 51-70, January –.
    21. Xinghong He & Zhichao Cao & Silin Zhang & Shumin Liang & Yuyang Zhang & Tianbo Ji & Quan Shi, 2020. "Coordination Investigation of the Economic, Social and Environmental Benefits of Urban Public Transport Infrastructure in 13 Cities, Jiangsu Province, China," IJERPH, MDPI, vol. 17(18), pages 1-19, September.
    22. Yang Zhou & Chunyang Tong & Yongsheng Wang, 2022. "Road construction, economic growth, and poverty alleviation in China," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1306-1332, September.
    23. Martin Černý, 2015. "Calculation of Internal Debt on Road Network in the Vysočina Region," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(4), pages 1235-1249.
    24. Cosmin Enache, 2009. "Fiscal Policy And Economic Growth In Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-50.

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    More about this item

    Keywords

    Transport infrastructure; Economic growth; Poverty alleviation;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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