On the Road: Access to Transportation Infrastructure and Economic Growth in China

51 Pages Posted: 2 Mar 2012 Last revised: 28 May 2023

See all articles by Abhijit V. Banerjee

Abhijit V. Banerjee

Massachusetts Institute of Technology (MIT) - Department of Economics

Esther Duflo

Massachusetts Institute of Technology (MIT) - Department of Economics; Abdul Latif Jameel Poverty Action Lab (J-PAL); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); Bureau for Research and Economic Analysis of Development (BREAD)

Nancy Qian

Yale University - Department of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: March 2012

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.

Suggested Citation

Banerjee, Abhijit V. and Duflo, Esther and Qian, Nancy, On the Road: Access to Transportation Infrastructure and Economic Growth in China (March 2012). NBER Working Paper No. w17897, Available at SSRN: https://ssrn.com/abstract=2014590

Abhijit V. Banerjee (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Esther Duflo

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Abdul Latif Jameel Poverty Action Lab (J-PAL) ( email )

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United States

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National Bureau of Economic Research (NBER)

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Centre for Economic Policy Research (CEPR)

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Bureau for Research and Economic Analysis of Development (BREAD) ( email )

Duke University
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United States

Nancy Qian

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States

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