The growth impact of transport infrastructure investment: A regional analysis for China (1978–2008)

This study aims to explore the impact of transport capital stock on economic growth in Chinese regions. Using panel data for a sample of 28 provinces and municipalities over the period 1978–2008, the empirical findings show that there is significant spatial variation in the productivity effects of transport infrastructure in China. The highest output elasticity in the connection provinces of the central region means that transport investments there will yield the highest economic returns, which is in line with “the emergence of new economic center” theory. From a policy perspective, China had best give priority to the development of transport facilities in the backland region to realize the rise of Central China.