This paper uses Feder model to test impacts of transport infrastructure on economic growth. With China provincial data from 1990-2010 the empirical models, including Basic model, Time-Lag model and Spatial model, demonstrate that transport infrastructure does have a positive Spillover Effect on economic growth. However, Direct Effect on economic growth is negative possibly due to Crowding-Out Effect and productivity difference between sectors. The research also proves the Spillover Effects are becoming weaker as time passed. Finally, Spatial Spillover Effect or Network Effects are confirmed.
Stimulate economic growth by improving transport infrastructure – a lesson from China
2014
Article (Journal)
Electronic Resource
Unknown
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