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Networks and Spatial Economics

, Volume 16, Issue 3, pp 769–790 | Cite as

Transportation and Regional Economic Development: Analysis of Spatial Spillovers in China Provincial Regions

  • Xiushan Jiang
  • Lei Zhang
  • Chenfeng Xiong
  • Ruijun Wang
Article

Abstract

The role of spillover effect of transportation endowment on regional economic development is analyzed in this paper. We adopt the reduced form from the Solow growth model to estimate spillover effect from transportation. The panel database in use incorporates provincial gross regional product (GRP), labor and capital supply, and transportation investment information from 1985 to 2012 in China. The results confirm positive and significant spillover effect in Chinese provinces. In this paper, non-homogeneous spillover effects are captured in the empirical regression by the use of spatial weighing methods based on provincial economics and similarity as well as geographic connection. Highly positive spillovers are observed between economically similar provinces. However, for those under-developed provinces, high network connectivity often results in low or negative spillovers. The mobility and migration of production factors are believed to be the sources of the negative spillovers, while the industrial reallocation and market expansion contribute to the positive spillovers.

Keywords

Economic development Transportation capital Spatial spillovers China Province 

Notes

Acknowledgments

This research is financially supported by Center of Cooperative Innovation for Beijing Metropolitan Transportation with Grant T14H100041 for Dr. Chunfu Shao. The opinions in this paper do not necessarily reflect the official views of the sponsor. They assume no liability for the content or use of this paper. The authors are solely responsible for all statements in this paper. The authors are grateful to the two anonymous reviewers for their constructive comments and suggestions.

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Xiushan Jiang
    • 1
  • Lei Zhang
    • 2
  • Chenfeng Xiong
    • 3
  • Ruijun Wang
    • 1
  1. 1.School of Traffic and TransportationBeijing Jiaotong UniversityBeijingChina
  2. 2.Department of Civil EngineeringUniversity of MarylandCollege ParkUSA
  3. 3.University of MarylandCollege ParkUSA

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