Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?

Abstract This paper provides empirical evidence on the links between infrastructure investment and economic growth in China. Using panel data from a sample of 24 Chinese provinces (excluding municipalities) throughout the 1985 to 1998 period, the estimation of a growth model shows that, besides differences in terms of reforms and openness, geographical location and infrastructure endowment did account significantly for observed differences in growth performance across provinces. The results indicate that transport facilities are a key differentiating factor in explaining the growth gap and point to the role of telecommunication in reducing the burden of isolation. J. Comp. Econ., March 2001 29(1), pp. 95–117. CERDI-IDREC, CNRS—Universite d'Auvergne, 65, boulevard Francois Mitterand, 63 000 Clermont-Ferrand, France. Copyright 2001 Academic Press. Journal of Economic Literature Classification Numbers: C33, H54, O11, R11.