Transportation Infrastructure and the Increase in TFP in China——Spatial Econometric Analysis on Provincial Panel Data

This paper analyses the relationship between transportation infrastructure and TFP growth in China by Spatial Econometrics of Panel Data. The result of empirical study show: there was obvious spatial autocorrelation been in China’s interlocal TFP during years 1997—2007; Transportation infrastructure had obvious positive impact to TFP in China, the add of rail and road infrastructure had taken China’s TFP increase 11.075 percentage during years 2001—2007, which made up of 59.100% of TFP’s amplification, thereinto, the positive impact of freeway and first -class road infrastructure were more obviously; Among last contribution, which from direct effects was relatively little as 25.700%, and which from indirect effects was actually 74.300%; Seeing from the result of time- period, rail infrastructure had persistent obvious positive impact to China’s TFP during years 2001—2007, freeway infrastructure had persistent obvious positive impact to China’s TFP during years 1997—2007, and else road infrastructure had not show this persistent significance like the freeway infrastructure.