Infrastructure, Trade and Income Disparities

  • Sangaralingam RameshEmail author


This chapter reveals a number of notable results from the empirical literature regarding infrastructure, trade and income disparities. Firstly, that the challenge is to extend the NEG framework with different functions and technical assumptions and then analyse the robustness of the results. This is necessary because NEG models make the unrealistic assumption that the spatial location is homogenous. These models are also static in that they do not portray the dynamic effects of innovation on agglomeration economies. Secondly, the availability of coastline to economic growth matters. Thirdly, road network density decreases moving from the coast to the hinterland; and TFP being a function of infrastructure endowment facilitates the use of technology by entrepreneurs. Different econometric studies have been conducted into the impact of different structural variables on China’s economic growth. However, none of these studies have taken into account that the infrastructural factors which have had the greatest impact on China’s economic growth are concentrated within Special Zones.  


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© The Author(s) 2017

Authors and Affiliations

  1. 1.University of OxfordOxfordUK

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