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Frontiers of Economics in China

Front. Econ. China    2020, Vol. 15 Issue (2) : 282-311     https://doi.org/10.3868/s060-011-020-0013-0
Orginal Article
Inter-Region Transportation Costs, Regional Economic Growth, and Disparities in China
Zhaomin Zhang()
School of Management, Shenzhen Polytechnic, Shenzhen 518000, China
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Abstract

To examine the correlation between regional economic growth and inter-region transportation costs in China, this study establishes a regional economic growth model embedded with inter-region transportation costs based on the Cobb-Douglas production function. Based on a balanced growth empirical model, this study verifies the correlation by conducting a regression analysis of the panel data of 29 provinces, municipalities, and autonomous regions from 1985 to 2015. The empirical results show that: (1) The per capita GDP growth among the three regions (namely, the eastern, central, and western regions of China) meets a conditional convergence trend, and the decreasing of the inter-region transportation costs increases the convergence speed; (2) The per capita GDP growth is in line with the club convergence trend within each of the three regions; (3) The trend of the output elasticity of the inter-region transportation costs shows that the gradual decrease of inter-region transportation costs has a positive correlation with the narrowing of economic disparity after the year 2000, accelerating "common prosperity" across different regions in China.

Keywords inter-region transportation costs      regional economic growth      growth differentials      panel data     
Issue Date: 10 July 2020
 Cite this article:   
Zhaomin Zhang. Inter-Region Transportation Costs, Regional Economic Growth, and Disparities in China[J]. Front. Econ. China, 2020, 15(2): 282-311.
 URL:  
http://journal.hep.com.cn/fec/EN/10.3868/s060-011-020-0013-0
http://journal.hep.com.cn/fec/EN/Y2020/V15/I2/282
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