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An Empirical Study on Infrastructure Construction and Economic Growth of Gansu Province

Author: ZhangZuo
Tutor: LiXingJiang
School: Northwest Normal University
Course: Regional Economics
Keywords: Infrastructure economic growth production function Gansu province
CLC: F281
Type: Master's thesis
Year: 2013
Downloads: 3
Quote: 0
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Abstract


Infrastructure is an important manifestation of the overall quality and thecomprehensive national strength of the national economy, as well as, it is an importantsymbol of modernization level. The infrastructure is also an important factor in promotingregional economic growth. Since the reform and opening-up, Gansu province achieved rapideconomic growth, the region’s GDP grew by6.473billion in1978to412.075billion in2010,an increase of65times, an average annual growth rate of13.41%. In the process,infrastructure construction has played an important role. We studied the relationship betweeninfrastructure investment and economic growth in Gansu province. It is conducive to relevantdepartments understand the regional infrastructure construction situation correctly, to find away to speed up the economic and social development in Gansu province, achieve the goal ofGansu economic prosperity.This paper made a brief overview about the situation of infrastructure in Gansu province,the existing problems and situation of economic development. Having an Co-integrationAnalysis between Gansu infrastructure investment and economic growth, through testingco-integration coefficient of0.8929. Beside, Granger causality test found that economicgrowth promote the construction of infrastructure in the short term, both as a cause and effectrelationship in the long term. Then estimated the output elasticity of Gansu infrastructureinvestment through the establishment of the three elements of the production function model,the result is0.309. The average contribution rate of infrastructure investment to economicgrowth is43.89%. Finally, on the basis of the argument, Putting forward policyrecommendations to improve infrastructure construction in Gansu province.

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