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What Came First, Transportation Or Urbanization?

Author

Listed:
  • TIE-YING LIU

    (School of Economics and Management, Beijing Jiaotong University, Beijing, P. R. China)

  • CHI-WEI SU

    (Department of Economics, Qingdao University, Shandong, P. R. China)

  • MENG QIN

    (Graduate Academy, Party School of the Central Committee of the Communist Party of China, (National Academy of Governance), Beijing, P. R. China)

  • XIAO-YAN ZHANG

    (National Academy of Economic Strategy Chinese Academy of Social Sciences, School of Finance Shanxi University of Finance & Economics Shanxi, P. R. China)

Abstract

This paper proposes new perspective on the nexus between transportation and urbanization in China to test the search-matching theory. We find that the linkage between transportation and urbanization has both frequency and time-varying features. We find that transportation improves urbanization in the short term, while urbanization plays the importation role in transportation during the period 1969–1996. This result obviously supports search-matching theory that in the subsample periods, the transportation infrastructure exerts positive effects on urbanization in the short term but not in the long term. In the long term, urbanization will promote the development of transportation, while short-term traffic infrastructure investment can effectively improve the transfer of population to urban regions. It would be beneficial for the government to formulate the scientific traffic planning policy and adjust the transport structure to improve urbanization.

Suggested Citation

  • Tie-Ying Liu & Chi-Wei Su & Meng Qin & Xiao-Yan Zhang, 2023. "What Came First, Transportation Or Urbanization?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(05), pages 1715-1730, September.
    • Handle: RePEc:wsi:serxxx:v:68:y:2023:i:05:n:s0217590819500693
    DOI: 10.1142/S0217590819500693
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    More about this item

    Keywords

    Transportation; urbanization; wavelet analysis; time domain; frequency domain;
    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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