The Role of InfrastructureInvestment Location in China's Western Development

Xubei Luo

World Bank, Washington, D.C.

关键词: INFRASTRUCTURE INVESTMENTS;    GEOGRAPHICAL BALANCE;    GEOGRAPHICAL LOCATION;    PANEL DATA SETS;    TRANSPORT COSTS;   

DOI  :  10.1596/1813-9450-3345
RP-ID  :  WPS3345

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Development of the western region isvital to the balanced growth of China. The author studiesthe impacts of infrastructure investment that may mostefficiently alleviate the burden of geographical remotenessof the West. Having constructed the �adjusted distance� toapproximate the transport cost, which takes into account theeffects of real distance and infrastructure development, theauthor defines the �peripheral degree� to measure theeffective remoteness of a province to an economic center.Using panel data for 1979�99 from the Chinese provinces, sheshows that geographic attractiveness plays a significantrole in a Solow-type growth determination model. Given theinvariability of pure geographic position, progress intransportation facilities is essential to reduce thegeographic handicap and to encourage the catching-up of thewestern region. The author�s simulation results show thatthe central transportation hubs (Hubei, Henan, and Hunan)merit most infrastructure investments, for they favor thedevelopment of many provinces, if regional balanced growthis considered as the prime objective. In particular,improvement in the transportation facilities in central hubswill have greater effects on western development than thatin the western region by itself. Improvements in thetransportation facilities of the central hubs substantiallyimproves the geographic attractiveness of the western regionby reducing the transport cost from the West to the Coastand by promoting the emergence of new economic centers insuch hubs, which tends to modify the national economicgeographic structure.