Skip to main content
SpringerLink
Log in
SpringerLink
Log in

Infrastructure and Regional Economic Growth in the One Belt and One Road Regions: A Dynamic Shift-Share Approach

  • Chapter
  • First Online:
Development Studies in Regional Science

Part of the book series: New Frontiers in Regional Science: Asian Perspectives ((NFRSASIPER,volume 42))

Abstract

The One Belt and One Road (OBOR) Initiative was introduced by the Chinese government in 2013 with the purpose of promoting regional economic cooperation and integration among more than 65 Eurasian countries. One of the objectives is to promote infrastructure development in order to facilitate international trade and promote economic growth among OBOR countries. Although the Chinese government has committed to increase infrastructure investment over the next decade, it remains unclear how regional economic growth may be affected by infrastructure investment given that such an initiative targets a wide range of diverse economies. In addition, it is unclear whether the OBOR Initiative is effective in achieving the goal of regional economic integration. This study intends to address these questions through an examination of the linkages between infrastructure and regional economic growth, with a focus on OBOR countries. Through a regional comparative analysis, we confirm that the infrastructure conditions and regional economic growth manifested by the change of employment vary substantially among different sectors and different countries. Specifically, rapid growth in the tertiary sector in some regions, such as the East and South Asia, was confirmed to have benefited from strong local competitiveness due to developed infrastructure. Conversely, regional growth in the Commonwealth of Independent States (CIS), Mid Asia, and Eastern Europe was found to lag due to the lack of local advantages. The research results suggest infrastructure development strategies need to be implemented more cautiously, with a consideration of regional competitiveness in different countries.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 159.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Data source: https://data.worldbank.org/

References

  • Anyanwu JC, Yameogo ND (2015) What drives foreign direct investments into West Africa? An empirical investigation. Afr Dev Rev 27(3):199–215

    Google Scholar 

  • Aschauer DA (1989) Public investment and productivity growth in the Group of Seven. Econ Perspect 13(5):17–25

    Google Scholar 

  • Banister D, Berechman Y (2001) Transport investment and the promotion of economic growth. J Transp Geogr 9(3):209–218

    Google Scholar 

  • Baldwin RE, Forslid R (2000) The core–periphery model and endogenous growth: stabilizing and destabilizing integration. Economica 67(267):307–324

    Google Scholar 

  • Barff RA, Knight PL (1988) Dynamic shift-share analysis. Growth Chang 19(2):1–10

    Google Scholar 

  • Barro RJ, Sala-i-Martin X (1995) Economic growth, advanced series in economics. McGraw-Hill, New York/London/Montreal

    Google Scholar 

  • Baumol WJ (1967) Macroeconomics of unbalanced growth: the anatomy of urban crisis. Am Econ Rev 57(3):415–426

    Google Scholar 

  • Button K (1998) Infrastructure investment, endogenous growth and economic convergence. Ann Reg Sci 32(1):145–162

    Google Scholar 

  • Chen Z, Haynes KE (2017) Impact of high-speed rail on regional economic disparity in China. J Transp Geogr 65:80–91

    Google Scholar 

  • Chen M, Yip PS (2018) A study on population dynamics in “Belt & Road” countries and their implications. China Popul Dev Stud 2(2):158–172

    Google Scholar 

  • China Global Investment Tracker (2018) American Enterprise Institute. http://www.aei.org/china-global-investment-tracker/

    Google Scholar 

  • Ciccone A, Hall RE (1993) Productivity and the density of economic activity (No. w4313). National Bureau of Economic Research

    Google Scholar 

  • Démurger S (2001) Infrastructure development and economic growth: an explanation for regional disparities in China? J Comp Econ 29(1):95–117

    Google Scholar 

  • Dinc M, Haynes KE (1999) Sources of regional inefficiency: an integrated shift-share, data envelopment analysis and input-output approach. Ann Reg Sci 33(4):469–489

    Google Scholar 

  • Dinc M, Haynes K (2005) Productivity, international trade and reference area interactions in shift-share analysis: some operational notes. Growth Chang 36(3):374–394

    Google Scholar 

  • Dorsey J M (2019) A China wins twice proposition: the belt and road initiative, SSRN Electron J

    Google Scholar 

  • Du J, Zhang Y (2018) Does One Belt One Road initiative promote Chinese overseas direct investment? China Econ Rev 47:189–205

    Google Scholar 

  • Elburz Z, Nijkamp P, Pels E (2017) Public infrastructure and regional growth: lessons from meta-analysis. J Transp Geogr 58:1–8

    Google Scholar 

  • Ezcurra R, Gil C, Pascual P, Rapún M (2005) Regional inequality in the European Union: does industry mix matter? Reg Stud 39(6):679–697

    Google Scholar 

  • Ezcurra R, Pascual P, Rapún M (2007) Spatial inequality in productivity in the European union: sectoral and regional factors. Int Reg Sci Rev 30(4):384–407

    Google Scholar 

  • Fan J, Zhu G (2002) The evolution of China’s regional disparity and structural decomposition. Manage World 7:37–44. (in Chinese)

    Google Scholar 

  • Fernald JG (1999) Roads to prosperity? Assessing the link between public capital and productivity. Am Econ Rev 89(3):619–638

    Google Scholar 

  • Freeman RB (1995) Are your wages set in Beijing? J Econ Perspect 9(3):15–32

    Google Scholar 

  • Fujita M, Hu D (2001) Regional disparity in China 1985–1994: the effects of globalization and economic liberalization. Ann Reg Sci 35(1):3–37

    Google Scholar 

  • Fujita M, Thisse JF (1996) Economics of agglomeration. J Jpn Int Econ 10(4):339–378

    Google Scholar 

  • Fukuyama F (2016) One Belt, One Road: exporting the Chinese model to Eurasia. The Australian 4

    Google Scholar 

  • Gunasekera K, Anderson W, Lakshmanan TR (2008) Highway-induced development: evidence from Sri Lanka. World Dev 36(11):2371–2389

    Google Scholar 

  • Haynes KE, Chen Z (2017). Infrastructure and Regional Development. International Encyclopedia of Geography: People, the Earth, Environment and Technology, 1–8

    Google Scholar 

  • Holodny E (2016) This chart is an ominous sign for China’s future. Available online: https://www.businessinsider.com/chinas-working-age-population-peaked-2016-4

  • Huang Y (2016) Understanding China’s Belt & Road initiative: motivation, framework and assessment. China Econ Rev 40:314–321

    Google Scholar 

  • Johnston LA (2018) The belt and road initiative: what is in it for China? Asia & the Pacific Policy Studies

    Google Scholar 

  • Krugman P (1991) Increasing returns and economic geography. J Polit Econ 99(3):483–499

    Google Scholar 

  • Kuznets S (1955) Economic growth and income inequality. Am Econ Rev 45(1):1–28

    Google Scholar 

  • Lee JW, McKibbin WJ (2018) Service sector productivity and economic growth in Asia. Econ Model 74:247–263

    Google Scholar 

  • Li H, Haynes KE (2011) Economic structure and regional disparity in China: beyond the Kuznets transition. Int Reg Sci Rev 34(2):157–190

    Google Scholar 

  • Liu W, Dunford M (2016) Inclusive globalization: unpacking China’s belt and road initiative. Area Dev Policy 1(3):323–340

    Google Scholar 

  • Liu Z, Wang T, Sonn JW, Chen W (2018) The structure and evolution of trade relations between countries along the Belt and Road. J Geogr Sci 28(9):1233–1248

    Google Scholar 

  • Mitchell W, Carlson E (2005) Exploring employment growth disparities across metropolitan and regional Australia. Australas J Reg Stud 11(1):25

    Google Scholar 

  • Mitchell W, Myers J, Juniper J (2005) Extending shift-share analysis to account for spatial effects: a study using Australian census data, Centre of full employment and equity. Coffee, Newcastle, Australia, pp 05–19

    Google Scholar 

  • Munnell A, Cook LM (1990, September) How does public infrastructure affect regional economic performance? N Engl Econ Rev, 11–33

    Google Scholar 

  • O’leary E (2003) Aggregate and sectoral convergence among Irish regions: the role of structural change, 1960–96. Int Reg Sci Rev 26(4):483–501

    Google Scholar 

  • Sahoo P, Dash RK (2009) Infrastructure development and economic growth in India. J Asia Pac Econ 14(4):351–365

    Google Scholar 

  • Schettkat R, Yocarini L (2006) The shift to services employment: a review of the literature. Struct Chang Econ Dyn 17(2):127–147

    Google Scholar 

  • Shenggen FAN, Zhang X (2004) Infrastructure and regional economic development in rural China. China Econ Rev 15(2):203–214

    Google Scholar 

  • Shi K, Yu B, Huang C, Wu J, Sun X (2018) Exploring spatiotemporal patterns of electric power consumption in countries along the Belt and Road. Energy 150:847–859

    Google Scholar 

  • Stubbs R (1999) War and economic development: export-oriented industrialization in East and Southeast Asia. Comp Polit 31:337–355

    Google Scholar 

  • Swaine MD (2015) Chinese views and commentary on the ‘One Belt, One Road’ initiative. China Leadersh Monit 47(2):3

    Google Scholar 

  • Turner C (2018) Regional infrastructure systems: the political economy of regional infrastructure. Edward Elgar Publishing, Cheltenham

    Google Scholar 

  • Williamson JG (1965) Regional inequality and the process of national development: a description of the patterns. Econ Dev Cult Chang 13(4, Part 2):1–84

    Google Scholar 

  • Yii KJ, Bee KY, Cheam WY, Chong YL, Lee CM (2018) Is transportation infrastructure important to the One Belt One Road (OBOR) initiative? Empirical evidence from the selected Asian countries. Sustainability 10(11):4131

    Google Scholar 

  • Yu S (2018) Belt and road initiative: defining China’s grand strategy and the future world order (Doctoral dissertation)

    Google Scholar 

  • Yu N, De Jong M, Storm S, Mi J (2012) Transport infrastructure, spatial clusters and regional economic growth in China. Transp Rev 32(1):3–28

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Institute of Transportation Studies, University of California, Davis, CA, USA

    Kailai Wang

  2. Knowlton School of Architecture, City and Regional Planning, The Ohio State University, Columbus, OH, USA

    Zhenhua Chen

Authors
  1. Kailai Wang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Zhenhua Chen
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Zhenhua Chen .

Editor information

Editors and Affiliations

  1. Knowlton School of Architecture, City and Regional Planning, The Ohio State University, Columbus, OH, USA

    Zhenhua Chen

  2. Department of Urban Studies, Levin College of Urban Affairs, Cleveland State University, Cleveland, OH, USA

    William M. Bowen

  3. University of North Carolina at Chapel Hill, Chapel Hill, NC, USA

    Dale Whittington

  4. University of Manchester, Manchester, UK

    Dale Whittington

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Wang, K., Chen, Z. (2020). Infrastructure and Regional Economic Growth in the One Belt and One Road Regions: A Dynamic Shift-Share Approach. In: Chen, Z., Bowen, W.M., Whittington, D. (eds) Development Studies in Regional Science. New Frontiers in Regional Science: Asian Perspectives, vol 42. Springer, Singapore. https://doi.org/10.1007/978-981-15-1435-7_13

Download citation

  • DOI: https://doi.org/10.1007/978-981-15-1435-7_13

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-15-1434-0

  • Online ISBN: 978-981-15-1435-7

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation