Does Infrastructure Have A Transitory or Longer-term Impact? Evidence from China

Yin-Fang Zhang, Shengbao Ji

Research output: Contribution to journalArticlepeer-review


It is ambiguous in the literature whether infrastructure only has transitory effects by lifting the level of aggregate output, or a longer-term impact by boosting the growth rate of output. The paper attempts to shed empirical light on this issue by looking at the case of China. It employs an infrastructure-augmented production function framework and a growth regression model, and adopts panel threshold regressions to address non-linearity. The results show that infrastructure stocks (except railways) are more productive than other physical capital in raising output levels, but not so when it comes to the effect on long-term growth rates. The analysis also finds that infrastructure's productivity depends on whether it is oversupplied or in shortage relative to non-infrastructure capital.
Original languageEnglish
Pages (from-to)195-207
Number of pages13
JournalEconomic Modelling
Early online date3 Apr 2018
Publication statusPublished - 1 Jun 2018


  • infrastructure, economic growth, panel threshold-effect regression, China

Research Beacons, Institutes and Platforms

  • Global Development Institute


Dive into the research topics of 'Does Infrastructure Have A Transitory or Longer-term Impact? Evidence from China'. Together they form a unique fingerprint.

Cite this