Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach

摘要

This study employs spatial panel techniques to examine determinants of regional allocation ofinfrastructure investment made by the central government. Using a sample of 31 Chineseprovinces over the 2001 -2008 period, we derived four major empirical findings. First, there existsubstantial spatial interactions of central government's investment across regions. Second, thecentral investment exhibits a highly persistent effect. Third, the central government attempts tobalance equity and efficiency in its decision-making. Last the political factor plays a significantrole in the regional infrastructure investment.