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Is transportation improving urbanization in China?

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  • Liu, Tie-Ying
  • Su, Chi-Wei

Abstract

This study applies the rolling-window causality test to analyze the interaction between transportation infrastructure and urbanization in China. Our results obviously support search-matching theory in that transportation infrastructure exerts positive effects on urbanization in sub-sample periods. Urbanization does not Granger cause transportation infrastructure development except for the 1977–1980 period, when urbanization exerted negative effects on transportation infrastructure. The transportation structure is inadequate, and rational allocation of transportation resources is needed to improve the level of urbanization. This means that transportation improves urbanization due to government investment and regional integration. Development of transportation infrastructure has been rapid, which improved urbanization during the Great Cultural Revolution period. Urbanization urgently needs to keep up with the development of traffic infrastructure construction by adding to traffic investment. Transportation infrastructure requires whole planning, a unified layout, and rational adjustment of the transportation structure.

Suggested Citation

  • Liu, Tie-Ying & Su, Chi-Wei, 2021. "Is transportation improving urbanization in China?," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:soceps:v:77:y:2021:i:c:s0038012121000264
    DOI: 10.1016/j.seps.2021.101034
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    More about this item

    Keywords

    Transportation infrastructure; Urbanization; Rolling-window test; Time-varying causality;
    All these keywords.

    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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