Munich Personal RePEc Archive

Central Government's Infrastructure Investment across Chinese Regions: A Dynamic Spatial Panel Data Approach

Zheng, Xinye and Li, Fanghua and Song, Shunfeng and Yu, Yihua (2013): Central Government's Infrastructure Investment across Chinese Regions: A Dynamic Spatial Panel Data Approach. Forthcoming in: China Economic Review

[img]
Preview
PDF
MPRA_paper_50407.pdf

Download (946kB) | Preview

Abstract

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

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.