Effects of Transportation Infrastructure in China: APanel Cointegration Analysis

Abstract: This study employs panel cointegration methods to examine the effects of transportation infrastructure on economic growth in China from 2004 to 2019. Empirical results indicate a cointegration relationship between regional GDP, transportation infrastructure, and other key variables, including private capital stock and labor force. Furthermore, transportation infrastructure in the eastern region substantially contributes to regional GDP with the highest positive impact, followed by the central region and then the western region. Keywords: Transportation Infrastructure, Economic Growth, Panel Cointegration, Dynamic OLS, Fully Modified OLS JEL Classification Number: C33, H54, R42, O18, R11