Transportation and Regional Economic Development: Analysis of Spatial Spillovers in China Provincial Regions

摘要

The role of spillover effect of transportation endowment on regional economic development is analyzed in this paper. We adopt the reduced form from the Solow growth model to estimate spillover effect from transportation. The panel database in use incorporates provincial gross regional product (GRP), labor and capital supply, and transportation investment information from 1985 to 2012 in China. The results confirm positive and significant spillover effect in Chinese provinces. In this paper, non-homogeneous spillover effects are captured in the empirical regression by the use of spatial weighing methods based on provincial economics and similarity as well as geographic connection. Highly positive spillovers are observed between economically similar provinces. However, for those under-developed provinces, high network connectivity often results in low or negative spillovers. The mobility and migration of production factors are believed to be the sources of the negative spillovers, while the industrial reallocation and market expansion contribute to the positive spillovers.