A study on transportation infrastructure and upgrading of industrial structure in China

Abstract

The construction of transportation infrastructure influences upgrading of industrial structure by changing flow of production factors. Whether China's high development of transportation infrastructure is beneficial to the upgrading of industrial structure is still a question. By utilizing the data of 1978-2009 in models of VAR and VEC, the study shows that China's development of transportation infrastructure has a long-term function to improve upgrading of industrial structure. The result of impulse response function (IRF) shows that the tertiary industry begins to response to the transportation infrastructure after 4-6 periods. The reason is explained. © 2013 Springer-Verlag.