The Effect of Public Infrastructure on Cost Structure and Performance of Chinese Provinces*
Chen Yu and
Theofanis P. Mamuneas
Asian Economic Journal, 2021, vol. 35, issue 1, 3-26
Abstract:
This paper estimates a translog cost function for 29 Chinese provinces between 1979 and 2018. The results imply that investment in public infrastructure reduces costs in all provinces. Comparing the estimated rate of return to infrastructure with the rate of return to private capital, our results indicate underinvestment for the initial period after the economic reforms; however, after 2010 our results show overinvestment in infrastructure. Infrastructure capital is a substitute input to labor, private capital and intermediate inputs. Finally, public infrastructure growth contributes positively to labor and total factor productivity growth, but the effect is small. The growth of private capital and intermediate inputs are the most important factors that boost the growth of labor productivity.
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://doi.org/10.1111/asej.12229
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bla:asiaec:v:35:y:2021:i:1:p:3-26
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1351-3958
Access Statistics for this article
Asian Economic Journal is currently edited by Sung Yun-Wing and Shigeyuki Abe
More articles in Asian Economic Journal from East Asian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().