On the Road: Access to Transportation Infrastructure and Economic Growth in China
Name
Banerjee12-06.pdf
Size
1.81 MB
Format
Adobe PDF
Checksum (MD5)
7c93503f432e358e75a1a12f1917264c
Author(s)
Banerjee, Abhijit
Duflo, Esther
Qian, Nancy
Date Issued
February 29, 2012
Publisher
Cambridge, MA: Department of Economics, Massachusetts Institute of Technology
Series/Report no.
Working paper, Massachusetts Institute of Technology, Dept. of Economics;12-06
Abstract
This paper estimates the effect of access to transportation networks on regional economic outcomes in China over a twenty-period of rapid income growth. It addresses the problem of the endogenous placement of networks by exploiting the fact that these networks tend to connect historical cities. Our results show that proximity to transportation networks have a moderate positive causal effect on per capita GDP levels across sectors, but no effect on per capita GDP growth. We provide a simple theoretical framework with empirically testable predictions to interpret our results. We argue that our results are consistent with factor mobility playing an important role in determining the economic benefits of infrastructure development.
Subjects
infrastructure
growth
inequality
firms
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