Infrastructure development and economic growth: An explanation for regional disparities in China?

This paper provides empirical evidence on the links between infrastructure investment and economic growth in China. Using panel data from a sample of 24 Chinese provinces (excluding municipalities) throughout the 1985 to 1998 period, the estimation of a growth model shows that, besides differences i n terms of reforms and openness, geographical location and infrastructure e ndowment did account significantly for observed differences in growth perfo rmance across provinces. The results indicate that transport facilities are a key differentiating factor in explaining the growth gap and point to the role of telecommunication in reducing the burden of isolation. J. Comp. Ec on., March 2001, 29(1), pp. 95-117. CERDI-IDREC, CNRS-Universite d'Auvergne , 65, boulevard Francois Mitterand, 63 000 Clermont-Ferrand. France. (C) 20 01 Academic Press.