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Transport Development, Regional Concentration and Economic Growth

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  • Chengri Ding

Abstract

‘New Geographical Economy’ suggests an inverted-U-shaped relationship between transport costs and regional economic concentration. By using data on Chinese prefectures, this paper examines the relationship between transport development and economic concentration, to investigate the ‘point effect’ and ‘network effect’ of transport stocks and to gauge their relative magnitudes. The paper concludes the following: the development of urban roads leads to rising GDP shares in the city-proper for both manufacturing and service industries; major regional roads have the same effect. A ‘point effect’ is found for both urban roads and major regional roads in GDPs. There are spillover effects for both urban roads and major regional roads. Finally, different types of transport infrastructure have different economic impacts. The policy implication is that the urban–rural economic growth gap is likely to continue to increase with urban and regional transport development during the rapid urbanisation concurrently undertaken.

Suggested Citation

  • Chengri Ding, 2013. "Transport Development, Regional Concentration and Economic Growth," Urban Studies, Urban Studies Journal Limited, vol. 50(2), pages 312-328, February.
    • Handle: RePEc:sae:urbstu:v:50:y:2013:i:2:p:312-328
    DOI: 10.1177/0042098012450479
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    2. Arthur Grimes & Eyal Apatov & Larissa Lutchman & Anna Robinson, 2014. "Infrastructure’s Long-Lived Impact on Urban Development: Theory and Empirics," Working Papers 14_11, Motu Economic and Public Policy Research.
    3. Yunlong Gong & Peter Boelhouwer & Jan de Haan, 2016. "Interurban house price gradient: Effect of urban hierarchy distance on house prices," Urban Studies, Urban Studies Journal Limited, vol. 53(15), pages 3317-3335, November.
    4. Zhi Li & Chengri Ding & Yi Niu, 2019. "Industrial structure and urban agglomeration: evidence from Chinese cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 191-218, August.
    5. Ding, Chengri & Niu, Yi & Lichtenberg, Erik, 2014. "Spending preferences of local officials with off-budget land revenues of Chinese cities," China Economic Review, Elsevier, vol. 31(C), pages 265-276.
    6. 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.
    7. Maparu, Tuhin Subhra & Mazumder, Tarak Nath, 2017. "Transport infrastructure, economic development and urbanization in India (1990–2011): Is there any causal relationship?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 319-336.
    8. Castillo-Manzano, José I. & Pedregal, Diego J. & Pozo-Barajas, Rafael, 2016. "An econometric evaluation of the management of large-scale transport infrastructure in Spain during the great recession: Lessons for infrastructure bubbles," Economic Modelling, Elsevier, vol. 53(C), pages 302-313.

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