IDEAS home Printed from https://ideas.repec.org/a/idn/journl/v27y2024i1dp99-112.html
   My bibliography  Save this article

Does Infrastructure Investment Remain an Effective Expansionary Tool? Based On the Green Economy Growth Perspective

Author

Listed:
  • Wenfeng Ge

    (Xinjiang University, China)

  • Xiaodong Yang

    (Xinjiang University, China)

  • Qiying Ran

    (Xinjiang University, China)

Abstract

In the post-COVID-19 pandemic era, boosting the economy through infrastructure investment has emerged as an imperative tool. Apart from coping with the downward pressure on the economy caused by the pandemic, governments are concerned about green economic growth. Using data for 30 provincial-level administrative regions in China, we examine the impact of infrastructure investment on green economic growth. Our findings are as follows. Infrastructure investment significantly inhibits green economic growth; we discover this outcome to be robust. The impact of infrastructure investment on green economic growth differs for different regions. The negative effect of infrastructure investment on green economic growth is substantial in the central-western region, but it is found to be statistically insignificant in the eastern regions.

Suggested Citation

  • Wenfeng Ge & Xiaodong Yang & Qiying Ran, 2024. "Does Infrastructure Investment Remain an Effective Expansionary Tool? Based On the Green Economy Growth Perspective," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 99-112, March.
    • Handle: RePEc:idn:journl:v:27:y:2024:i:1d:p:99-112
    DOI: https://doi.org/10.59091/2460-9196.2231
    as

    Download full text from publisher

    File URL: https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=2231&context=bmeb
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.59091/2460-9196.2231?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Merriman, David, 1991. "Public capital and regional output : Another look at some Japanese and American data," Regional Science and Urban Economics, Elsevier, vol. 20(4), pages 437-458, February.
    2. Yu Hao & Yunxia Guo & Haitao Wu, 2022. "The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 403-424, January.
    3. Pierre-Richard Agénor & Kyriakos C. Neanidis, 2014. "Optimal taxation and growth with public goods and costly enforcement," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(4), pages 425-454, June.
    4. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
    5. Narayan, Paresh Kumar, 2021. "COVID-19 research outcomes: An agenda for future research," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 439-445.
    6. Lin, Boqiang & Zhou, Yicheng, 2022. "Measuring the green economic growth in China: Influencing factors and policy perspectives," Energy, Elsevier, vol. 241(C).
    7. Billings, Stephen B., 2011. "Estimating the value of a new transit option," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 525-536.
    8. Dinh Hoang Bach Phan & Paresh Kumar Narayan, 2020. "Country Responses and the Reaction of the Stock Market to COVID-19—a Preliminary Exposition," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2138-2150, August.
    9. Richard Heeks, 2010. "Do information and communication technologies (ICTs) contribute to development?," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(5), pages 625-640.
    10. Xu, Zhen & Das, Debasish Kumar & Guo, Wei & Wei, Wendong, 2021. "Does power grid infrastructure stimulate regional economic growth?," Energy Policy, Elsevier, vol. 155(C).
    11. Fortune Ganda, 2022. "The Environmental Impacts of Human Capital in the BRICS Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 611-634, March.
    12. Lakshmanan, T.R., 2011. "The broader economic consequences of transport infrastructure investments," Journal of Transport Geography, Elsevier, vol. 19(1), pages 1-12.
    13. Yezhou Sha & Susan Sunila Sharma, 2020. "Research on Pandemics Special Issue of the Journal Emerging Markets Finance and Trade," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2133-2137, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang Xu & Xiaodong Yang & Qiying Ran, 2024. "The Impact of Fiscal Science and Technology Expenditure on Digital Economy: A New Path to Economic Recovery in The Post-Pandemic Era," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 83-98, March.
    2. Siyu Ren & Mingyue Du, 2024. "Will Green Finance Become a New Driving Force for Environmental Governance in The Post-Covid-19 Era: Evidence from China," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 151-166, March.
    3. Li, Kaifeng & Devpura, Neluka & Cheng, Sijia, 2022. "How did the oil price affect Japanese yen and other currencies? Fresh insights from the COVID-19 pandemic," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).
    4. Iyke, Bernard Njindan & Maheepala, M.M.J.D., 2022. "Conventional monetary policy, COVID-19, and stock markets in emerging economies," Pacific-Basin Finance Journal, Elsevier, vol. 76(C).
    5. Solikin M. Juhro & Dhaha Praviandi Kuantan & Charvin Lim, 2024. "Capital Expenditure Dynamics in ASEAN: Unveiling Determinants and The Impact of The COVID-19 Pandemic on Non-Financial Corporations," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 1-24, March.
    6. Pogonyi, Csaba G. & Graham, Daniel J. & Carbo, Jose M., 2021. "Metros, agglomeration and displacement. Evidence from London," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    7. Behera, Harendra & Gunadi, Iman & Rath, Badri Narayan, 2023. "COVID-19 uncertainty, financial markets and monetary policy effects in case of two emerging Asian countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 173-189.
    8. Yanwei Lyu & You Wu & Wenqiang Wang & Jinning Zhang, 2024. "The Impact Of Covid-19 Pandemic On Carbon Emissions: Empirical Evidence From China," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 133-150, March.
    9. Chowdhury, Kushal Banik & Garg, Bhavesh, 2022. "Has COVID-19 intensified the oil price–exchange rate nexus?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 280-298.
    10. Zhang, Cheng & Lee, Yun-Chi & Ho, Kung-Cheng & Shen, Xixi, 2023. "Influence of institutional differences on trade credit use during pandemics," Pacific-Basin Finance Journal, Elsevier, vol. 77(C).
    11. Stephan Heblich & Stephen J Redding & Daniel M Sturm, 2020. "The Making of the Modern Metropolis: Evidence from London," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 2059-2133.
    12. Pérez, Jorge & Vial, Felipe & Zárate, Román, 2022. "Urban Transit Infrastructure: Spatial Mismatch and Labor Market Power," Research Department working papers 1992, CAF Development Bank Of Latinamerica.
    13. Ahlfeldt, Gabriel M. & Nitsch, Volker & Wendland, Nicolai, 2019. "Ease vs. noise: Long-run changes in the value of transport (dis)amenities," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    14. Padhan, Rakesh & Prabheesh, K.P., 2021. "The economics of COVID-19 pandemic: A survey," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 220-237.
    15. Shah, Sayar Ahmad & Garg, Bhavesh, 2023. "Testing policy effectiveness during COVID-19: An NK-DSGE analysis," Journal of Asian Economics, Elsevier, vol. 84(C).
    16. Redding, Stephen J. & Turner, Matthew A., 2015. "Transportation Costs and the Spatial Organization of Economic Activity," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1339-1398, Elsevier.
    17. Ouyang, Zi-sheng & Liu, Meng-tian & Huang, Su-su & Yao, Ting, 2022. "Does the source of oil price shocks matter for the systemic risk?," Energy Economics, Elsevier, vol. 109(C).
    18. Feng, Gen-Fu & Yang, Hao-Chang & Gong, Qiang & Chang, Chun-Ping, 2021. "What is the exchange rate volatility response to COVID-19 and government interventions?," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 705-719.
    19. Chun-Chang Lee & Chi-Ming Liang & Hui-Chuan Hong, 2020. "The Impact of a Mass Rapid Transit System on Neighborhood Housing Prices: An Application of Difference-In-Difference and Spatial Econometrics," Real Estate Management and Valuation, Sciendo, vol. 28(1), pages 28-40, March.
    20. Devi Prasad Dash & Narayan Sethi, 2022. "Pandemics, Lockdown And Economic Growth: A Region-Specific Perspective On Covid-19," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 25(Special I), pages 43-60, March.

    More about this item

    Keywords

    Post-epidemic era; Infrastructure investment; Green economic growth; Regional heterogeneity;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:journl:v:27:y:2024:i:1d:p:99-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.