Studies On Effect Of Infrastructure Investment On Economic Growth In China

Infrastructure is the physical foundation sharing by the public, including production, living, environment and safety. Therefore it is one country's basic condition of surviving and development. This paper aiming at Chinese infrastructure investment flow (infrastructure investment) and infrastructure investment flow stock (infrastructure capital) investigates systemically the scale and the structure of Chinese infrastructure investment. Furthermore it measures the effect of infrastructure capital and infrastructure investment the total factor productivity (TFP) in China.Firstly the paper analyzes the different definitions of infrastructure by domestic and overseas scholars, defining the scope of Chinese infrastructure, which is the broad sense infrastructure. Next according to the characteristic of infrastructure and the research purpose of this paper, the paper classifies the infrastructure over again.By the quantitative and qualitative way of analysis, the paper describes systemically the scale and the structure of Chinese infrastructure investment. And by the comparison of history data, it points out the characteristic of the level, scale and structure of Chinese infrastructure.Lastly the paper analyzes the influence of infrastructure to economic growth from the TFP on the base of before research, providing an econometric model which can measure the effect of infrastructure capital and infrastructure investment to the TFP, and analyzes it empirically. Besides, in according to the empirical results this paper points out the problem of Chinese infrastructure investment. Those have an important practical signification to evaluate the performance of infrastructure investment.The empirical analyzing shows that Chinese infrastructure level has a positive significant effect to the TFP growth (from 1978 to 2005). More influence analyzing of different infrastructure to the TFP shows that the TFP growth elasticity with respect to Chinese infrastructure are all positive except for post infrastructure. And communication infrastructure's elasticity is the biggest, transport infrastructure is the second, and post infrastructure is the last.The empirical analyzing also shows that Chinese infrastructure investment has a positive significant effect to the TFP growth (from 1978 to 2005). More influence analyzing of different infrastructure investment to the TFP shows that only transport, storage and post infrastructure investment has a positive effect to the TFP, while the significance level is 10%.