|
|
|
| A STUDY ON THE DIFFERENT INFLUENCE OF INFRASTRUCTURE ON REGIONAL ECONOMIC GROWTH IN CHINA |
| FAN Jiu-li, BAI Bao-li |
| Research Center of Economics, Northwestern Polytechnic University, Xi'an 710072, China |
|
|
|
|
Abstract The relation between infrastructure investment and economic growth has always been an eye catching issue on the economic growth theory.This paper addresses the issue on whether and by how much infrastructure can enhance economic performance, and deals with the effect of infrastructure investment on different regional economic growth.
In this paper, first, we give an overview of the literature on the subject. Then we establish production function approach and use regional panel data of the period 1996-2000 of 29 provinces of China to estimate the output elasticity of infrastructure investment and the different effect on different regions. The methodologies employed indicate a positive contribution of infrastructure investment to economic growth.
Then we estimate and compute the different effects on three regions of China. The output elasticity of infrastructure to GDP per capita in western region is the highest. It reaches 0.423 and overpasses the mean level of the whole country. The elasticity in eastern region is just 0.117,the elasticity in central region is 0.128. These results tell us that the great development policy in western region has been playing an important role in the economic growth in western region. And the increasing of investment in western region has a significant impact on economic output in the region.
And the conclusions and policy suggestions are:first, infrastructure investment in central and western regions should be paid more important attentions by the central government. More investment of government fiscal finance should be allocated in the western region to support regional growth; second, with the development of knowledge economy, the role of technology factor in economic development should be strengthened; third, the reform and opening-up of western region should be strengthened to improve the marketing level. The higher marketing level will promote the economic growth of the region. Based on the infrastructure investment in these years, more social investment should be crowed in the economy in western region.
|
|
Received: 10 December 2003
|
|
|
|
|
|
|
2004, Vol. 19 
