Infrastructure, Externalities and Regional Industrial Productivity in China: A Spatial Econometric Approach

Yin-Fang Zhang, Shengbao Ji

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Abstract

This paper evaluates infrastructure’s impact on regional industrial productivity in China and distinguishes between within- and cross-region effects. Three infrastructure assets are examined – electricity, roads and railways. It reveals positive short-run spatial interaction of electricity and road infrastructure, but not of railways. In the long term, the spatial spillovers of infrastructure stocks are positive among provinces which are not in competition for production, but turn negative among provinces similar in productivity in the case of electricity and among locations similar in exports in the case of roads and railways.
Original languageEnglish
JournalRegional Studies
Early online date6 Feb 2019
DOIs
Publication statusPublished - 2019

Keywords

  • infrastructure, industry, total factor productivity, spatial spillovers, China

Research Beacons, Institutes and Platforms

  • Global Development Institute

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