Study On Relationship Of Transportation Investment With Economic Growth

Economic growth as a result of transportation investment has been given more andmore attention in China by the governments at all levels. In the transportation sector,such investment has provided more jobs, lowered costs of production andtransportation and ecomomic growth, social progress, poverty reduction.This paper first introduces transportation improvement on economic developmentand reviews the research situations throught the world. Then the relationship betweentransportation and national economy is discussed through the contribution toeconomic growth, the changing structure of transportation, the current situation andexsiting problems.According to Barro's endogenous-growth models including tax-financedgovernment services, economic growth rates rise initially with productive governmentexpenditure. As for the economic growth in China since 1980, the paper finds aincrease in adjustment costs, which is signified by the sharp increase in extra-budgetary spending. Through regression model , this paper analyse statistics datasabout 20 years, its result is identical with reality.On the basis of this paper's research, I also develop many suggestions abouttransportation investment,such as the precondition, areas choice and enterprise'sfactors.