Show simple item record

Spillovers from transport infrastructures onto firm productivity: An analytical and empirical study

dc.contributor.authorLiu, Zheming
dc.contributor.authorLi, Bin
dc.contributor.authorZeng, Saixing
dc.contributor.authorChen, Hongquan
dc.date.accessioned2020-12-02T14:42:13Z
dc.date.availableWITHHELD_12_MONTHS
dc.date.available2020-12-02T14:42:13Z
dc.date.issued2020-11
dc.identifier.citationLiu, Zheming; Li, Bin; Zeng, Saixing; Chen, Hongquan (2020). "Spillovers from transport infrastructures onto firm productivity: An analytical and empirical study." Review of Development Economics 24(4): 1583-1609.
dc.identifier.issn1363-6669
dc.identifier.issn1467-9361
dc.identifier.urihttps://hdl.handle.net/2027.42/163648
dc.description.abstractAlthough issues about the economic spillovers from transport infrastructure have been discussed and debated for decades, a great deal of controversy concerning the direction and magnitude of the economic effects of transport infrastructure remains, and the empirical evidence of those effects in emerging economies is still insufficient. In this study, based on a sample of Chinese manufacturing firms during the period 1998–2007, we employed a method combining the difference‐in‐differences approach with the propensity scoring matching technique to research the effects of improvements in transport infrastructure on firm productivity. With highways used as a typical example of transport infrastructure, the results suggested that a connection to highways boosted firm productivity by an average of 0.043, or approximately 0.74% of the sample mean. Moreover, this study provided evidence that the effects of improvements in transport infrastructure on firm productivity were stronger in industries producing nondurable goods and driven by an increase in firm innovation. This study’s findings contribute to a reconciliation of the controversy concerning the economic effects of transport infrastructure and enrich the empirical evidence of that effect in emerging economies.
dc.publisherAuthor
dc.publisherWiley Periodicals, Inc.
dc.subject.otherfirm productivity
dc.subject.otherinnovation
dc.subject.otherNational Trunk Highway Development Program
dc.subject.othertransport infrastructure
dc.titleSpillovers from transport infrastructures onto firm productivity: An analytical and empirical study
dc.typeArticle
dc.rights.robotsIndexNoFollow
dc.subject.hlbsecondlevelEconomics
dc.subject.hlbtoplevelBusiness and Economics
dc.description.peerreviewedPeer Reviewed
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/163648/2/rode12701.pdfen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/163648/1/rode12701_am.pdfen_US
dc.identifier.doi10.1111/rode.12701
dc.identifier.sourceReview of Development Economics
dc.identifier.citedreferenceMoller, L. C., & Wacker, K. M. ( 2017 ). Explaining Ethiopia’s growth acceleration—The role of infrastructure and macroeconomic policy. World Development, 96, 198 – 215.
dc.identifier.citedreferenceFernald, J. G. ( 1999 ). Roads to prosperity? Assessing the link between public capital and productivity. American Economic Review, 89 ( 3 ), 619 – 638.
dc.identifier.citedreferenceHou, Q., & Li, S. M. ( 2011 ). Transport infrastructure development and changing spatial accessibility in the Greater Pearl River Delta, China, 1990–2020. Journal of Transport Geography, 19 ( 6 ), 1350 – 1360.
dc.identifier.citedreferenceJavorcik, B. S. ( 2004 ). Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages. American Economic Review, 94 ( 3 ), 605 – 627.
dc.identifier.citedreferenceJavorcik, B. S., & Poelhekke, S. ( 2017 ). Former foreign affiliates: Cast out and outperformed? Journal of the European Economic Association, 15 ( 3 ), 501 – 539.
dc.identifier.citedreferenceJedwab, R., & Moradi, A. ( 2011 ). Transportation infrastructure and development in Ghana (PSE Working Paper, No. 2011–24). Paris School of Economics, Paris.
dc.identifier.citedreferenceLakshmanan, T. R. ( 2011 ). The broader economic consequences of transport infrastructure investments. Journal of Transport Geography, 19 ( 1 ), 1 – 12.
dc.identifier.citedreferenceLevinsohn, J., & Petrin, A. ( 2003 ). Estimating production functions using inputs to control for unobservables. Review of Economic Studies, 70 ( 2 ), 317 – 341.
dc.identifier.citedreferenceLi, S. M., & Shum, Y. M. ( 2001 ). Impacts of the national trunk highway system on accessibility in China. Journal of Transport Geography, 9 ( 1 ), 39 – 48.
dc.identifier.citedreferenceLuong, T. A. ( 2013 ). Does learning by exporting happen? Evidence from the automobile industry in China. Review of Development Economics, 17 ( 3 ), 461 – 473.
dc.identifier.citedreferenceMelitz, M. J., & Trefler, D. ( 2012 ). Gains from trade when firms matter. Journal of Economic Perspectives, 26 ( 2 ), 91 – 118.
dc.identifier.citedreferenceMelo, P. C., Graham, D. J., & Brage‐Ardao, R. ( 2013 ). The productivity of transport infrastructure investment: A meta‐analysis of empirical evidence. Regional Science and Urban Economics, 43 ( 5 ), 695 – 706.
dc.identifier.citedreferenceMorrison, C. J., & Schwartz, A. E. ( 1996 ). State infrastructure and productive performance. American Economic Review, 86 ( 5 ), 1095 – 1111.
dc.identifier.citedreferenceOlley, G. S., & Pakes, A. ( 1996 ). The dynamics of productivity in the telecommunications equipment industry. Econometrica, 64 ( 6 ), 1263 – 1297.
dc.identifier.citedreferenceQian, X., & Yaşar, M. ( 2016 ). Export market diversification and firm productivity: Evidence from a large developing country. World Development, 82, 28 – 47.
dc.identifier.citedreferenceRosenbaum, P. R., & Rubin, D. B. ( 1983 ). The central role of the propensity score in observational studies for causal effects. Biometrika, 70 ( 1 ), 41 – 55.
dc.identifier.citedreferenceRosenbaum, P. R., & Rubin, D. B. ( 1985 ). Constructing a control group using multivariate matched sampling methods that incorporate the propensity score. American Statistician, 39 ( 1 ), 33 – 38.
dc.identifier.citedreferenceShi, H., & Huang, S. ( 2014 ). How much infrastructure is too much? A new approach and evidence from China. World Development, 56, 272 – 286.
dc.identifier.citedreferenceShiferaw, A., Söderbom, M., Siba, E., & Alemu, G. ( 2015 ). Road infrastructure and enterprise dynamics in Ethiopia. Journal of Development Studies, 51 ( 11 ), 1541 – 1558.
dc.identifier.citedreferenceSoderbom, M., & Teal, F. ( 2001 ). Firm size and human capital as determinants of productivity and earnings. Geneva: United Nations Industrial Development Organization.
dc.identifier.citedreferenceSong, Z., Storesletten, K., & Zilibotti, F. ( 2011 ). Growing like China. American Economic Review, 101 ( 1 ), 196 – 233.
dc.identifier.citedreferenceWorld Bank ( 1994 ). The World Bank annual report, 1994. Washington, DC: Author.
dc.identifier.citedreferenceWorld Bank ( 2007 ). China study tour by New Delhi transport office team. Washington, DC: Author.
dc.identifier.citedreferenceAckerberg, D. A., Caves, K., & Frazer, G. ( 2015 ). Identification properties of recent production function estimators. Econometrica, 83 ( 6 ), 2411 – 2451.
dc.identifier.citedreferenceAschauer, D. A. ( 1989 ). Is public expenditure productive? Journal of Monetary Economics, 23 ( 2 ), 177 – 200.
dc.identifier.citedreferenceAsian Development Bank. ( 2017 ). Meeting Asia’s infrastructure needs. Manila: Author.
dc.identifier.citedreferenceAw, B. Y., Roberts, M. J., & Xu, D. Y. ( 2008 ). R&D investments, exporting, and the evolution of firm productivity. American Economic Review, 98 ( 2 ), 451 – 456.
dc.identifier.citedreferenceBalli, H. O., & Sørensen, B. E. ( 2013 ). Interaction effects in econometrics. Empirical Economics, 45 ( 1 ), 583 – 603.
dc.identifier.citedreferenceBerg, A., Buffie, E. F., Pattillo, C., Portillo, R., Presbitero, A. F., & Zanna, L.‐F. ( 2019 ). Some misconceptions about public investment efficiency and growth. Economica, 86 ( 342 ), 409 – 430.
dc.identifier.citedreferenceCaliendo, M., & Kopeinig, S. ( 2008 ). Some practical guidance for the implementation of propensity score matching. Journal of Economic Surveys, 22 ( 1 ), 31 – 72.
dc.identifier.citedreferenceChandra, A., & Thompson, E. ( 2000 ). Does public infrastructure affect economic activity? Evidence from the rural interstate highway system. Regional Science and Urban Economics, 30 ( 4 ), 457 – 490.
dc.identifier.citedreferenceChang, Y. B., & Gurbaxani, V. ( 2012 ). Information technology outsourcing, knowledge transfer, and firm productivity: An empirical analysis. MIS Quarterly, 36 ( 4 ), 1043 – 1063.
dc.identifier.citedreferenceCremers, K. M., Nair, V. B., & Peyer, U. ( 2008 ). Takeover defenses and competition: The role of stakeholders. Journal of Empirical Legal Studies, 5 ( 4 ), 791 – 818.
dc.identifier.citedreferenceDatta, S. ( 2012 ). The impact of improved highways on Indian firms. Journal of Development Economics, 99 ( 1 ), 46 – 57.
dc.identifier.citedreferenceDehejia, R. H., & Wahba, S. ( 2002 ). Propensity score‐matching methods for nonexperimental causal studies. Review of Economics and Statistics, 84 ( 1 ), 151 – 161.
dc.identifier.citedreferenceDemmel, M. C., Máñez, J. A., Rochina‐Barrachina, M. E., & Sanchis‐Llopis, J. A. ( 2017 ). Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries. Review of Development Economics, 21 ( 4 ), 1341 – 1363.
dc.identifier.citedreferenceDiaz, M. A., & Sánchez, R. ( 2008 ). Firm size and productivity in Spain: A stochastic frontier analysis. Small Business Economics, 30 ( 3 ), 315 – 323.
dc.identifier.citedreferenceDuncan, T. ( 2007 ). Retrospective analysis of the road sector, 1997–2005. Manila: Operations Evaluation Department, Asian Development Bank.
dc.identifier.citedreferenceDuranton, G., Morrow, P. M., & Turner, M. A. ( 2014 ). Roads and trade: Evidence from the US. Review of Economic Studies, 81 ( 2 ), 681 – 724.
dc.identifier.citedreferenceDuvall, T., Green, A., & Kerlin, M. ( 2015 ). Making the most of a wealth of infrastructure finance. Washington, DC: McKinsey & Company.
dc.identifier.citedreferenceEscribano, Á., Guasch, J. L., & Pena, J. ( 2010 ). Assessing the impact of infrastructure quality on firm productivity in Africa: Cross‐country comparisons based on investment climate surveys from 1999 to 2005 (World Bank Policy Research Working Paper, No. 5191). World Bank, Washington, DC.
dc.identifier.citedreferenceFaber, B. ( 2014 ). Trade integration, market size, and industrialization: Evidence from China’s National Trunk Highway System. Review of Economic Studies, 81 ( 3 ), 1046 – 1070.
dc.identifier.citedreferenceFaggio, G., Silva, O., & Strange, W. C. ( 2017 ). Heterogeneous agglomeration. Review of Economics and Statistics, 99 ( 1 ), 80 – 94.
dc.owningcollnameInterdisciplinary and Peer-Reviewed


Files in this item

Show simple item record

Remediation of Harmful Language

The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.

Accessibility

If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.