The Analysis Of Impact On Regional Economic Development By Transportation Infrastructure Investment

With the rapid development of transportation industry in China, especially the increasingly forming of highway and high-speed railway network, the scale benefit of transportation infrastructure investment gradually reflects in the economic growth, employment increment and improvement of residents’ living standard. At present, China is transforming from the rapid economic growth mode to the steady and sustainable development mode, which results in the role of transport infrastructure investment changing gradually. Analysis of the influence mechanism and effect between transportation infrastructure investment and regional economic growth helps us comprehend the relationship between transport infrastructure investment and regional economic development deeply, as well as provides scientific theoretical basis to transportation planning and specific investment decisions.Based on the existing qualitative and quantitative researches, applying relevant knowledge of transportation economics and econometrics, this paper proposes a simultaneous equation model (SEM) to comprehensively consider the impact on regional economic development by transportation infrastructure investment. Firstly, based on the introduction of domestic and foreign related researches, the research framework of this article is established. Secondly, the paper summarizes the related theories and models of relations between transportation infrastructure investment and regional economic. Thirdly, analyzing the interaction mechanism of them, the paper extracts the main economic variables affecting the transportation infrastructure investment and regional economic development, and builds a simultaneous equation model including transportation investment equation, economic growth equation, traffic demand equation and employment equation. The model selects transportation investment, economic growth, traffic demand and employment levels as endogenous variables to consider the bi-directional relationship between transportation infrastructure investment and regional economic development. The model is also formulated with variables that reflect transportation supply at adjacent geographical areas to investigate spatial spillover effects. Lastly, empirical analysis based on a panel dataset of provincial administrative regions in China from1986to2011is conducted. Results show that transportation infrastructure investment in one region and its surrounding regions both have positive impacts on regional economic growth in that region, with the elasticity estimated at0.052and0.063, respectively. In addition, considering of the regional differences, regional models are also developed to analyze the impact of transportation infrastructure investment on regional economic development in different parts of China (i.e. eastern, central and western regions). The elasticities of economic growth with respect to transportation infrastructure investment in these different geographic regions of China are estimated to be0.079,0.346and0.318respectively. It is observed that increasing transportation infrastructure investment and improving regional traffic conditions in the central and western regions can promote their economic development more effectively.