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Transport Infrastructure, Spatial Clusters and Regional Economic Growth in China

Author

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  • Nannan Yu
  • Martin De Jong
  • Servaas Storm
  • Jianing Mi

Abstract

China's transport infrastructure distribution and its economic activities have largely the same pattern of spatial clusters. This paper aims to determine whether causal linkages exist between transport infrastructure investment and economic growth in China at national and regional levels. We examine causality in a panel cointegration and a Granger causality framework using time series data throughout the 1978--2008 period. The empirical findings show that in the long run, at the national level, there is unidirectional Granger causality from economic growth to transport infrastructure; at the regional level, there exists bidirectional causality in the affluent eastern region while the low-income central and western regions exhibit unidirectional Granger causality from economic growth to transport infrastructure. These results imply that an improvement in transport infrastructure alone is not sufficient for stimulating economic growth in the underdeveloped areas of China. To better realize the economic benefits brought by transport infrastructure, the Chinese government should pay serious attention to the development of complementary factors in the central and western provinces.

Suggested Citation

  • Nannan Yu & Martin De Jong & Servaas Storm & Jianing Mi, 2011. "Transport Infrastructure, Spatial Clusters and Regional Economic Growth in China," Transport Reviews, Taylor & Francis Journals, vol. 32(1), pages 3-28, July.
    • Handle: RePEc:taf:transr:v:32:y:2011:i:1:p:3-28
    DOI: 10.1080/01441647.2011.603104
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    Cited by:

    1. Piotr Rosik & Julia Wójcik, 2022. "Transport Infrastructure and Regional Development: A Survey of Literature on Wider Economic and Spatial Impacts," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    2. Yuee Gao & Xin Zou & Rujia Chen & Yanli Ma & Chengjiang Li & Yaping Zhang, 2020. "Freight Mode Coordination in China: From the Perspective of Regional Differences," Sustainability, MDPI, vol. 12(7), pages 1-24, April.
    3. Alice Shiu, Raymond Li, and Chi-Keung Woo, 2016. "Economic Growth and Infrastructure Investments in Energy and Transportation: A Causality Interpretation of Chinas Western Development Strategy," The Energy Journal, International Association for Energy Economics, vol. 0(China Spe).

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