Infrastructure And Regional Economy Development

Based on the analysis of the essence of infrastructure, the theories correlated with infrastructure and the structural disequilibria in the development of infrastructure in China, this paper studies the function mechanisms between infrastructure and regional economic development with positive and normative methods. After the analysis of impacts of infrastructure on regional economic growth and poverty reduction, the optimization and upgrading of industrial structure and the regional spatial exploitation, this paper further discusses the public policies of infrastructure in order to promote urbanization actively and soundly and establish Socialist New Villages successfully.Firstly, the paper put forward the important meaning of the study of relationships between infrastructure and regional economic development. Infrastructure includes not only tangible establishments and institutions but also intangible products and services produced by these real components. The consensus of the essence and functions of infrastructure promotes the development of theoretic and practical study in the field. Because there are spatial dependence of infrastructure and its services and diversity of infrastructure industries, it is most important to study the function mechanism of infrastructure and regional economic developmentSecondly, the paper views the infrastructure policies since 1990s and analyzes the achievements and structural disequilibria in infrastructure construction. It is regarded that there are spatial dual structure and industrial dual structure in infrastructure development. The spatial disequilibria include imbalanced development of infrastructure among the Eastern, Central and Western Regions, between urban and rural areas, and between different zones in the city. The industrial disequilibrium is the gap of economic infrastructure and social infrastructure. The infrastructure policies aiming at promoting regional development in harmony are essential to resolve these structural contradictions.Thirdly, the paper studies the impacts of infrastructure on economic growth and poverty reduction and concludes the international experiences of World Bank in infrastructure strategies. The empirical and practical analyses show that the infrastructure construction can ensure the realization of pro-poor growth. The regional growth effects of infrastructure include the increase of derived demand caused by investment, the decrease of production costs, the improvement of productivity of other factors and the changes of market supply and demand caused by infrastructure services. It is important to investment in infrastructure, but it is more important to improve the services provided by infrastructure. Because the services of infrastructure have regional characters, only the services that are suitable for regional development can greatly promote regional growth and poverty reduction.Fourthly, based on the analysis of impacts of infrastructure on regional industrial structure, it is regarded that the infrastructure industries are direct components of industrial structure and their development can penetrate throughout the whole industrial chains by mutual relationships, which promotes regional industrial structure upgrading. According to current macroeconomic policies, the transport infrastructure should speed up construction and integration and establish the modern regional logistic systems. The energy infrastructure should accelerate the structural adjustment and optimize the electronic infrastructure structure. The technological infrastructure should adapt to the emerging technology challenges and provide firms with technological capacity.Fifthly, the paper analyzes the relationships between infrastructure and regional spatial structures and put forward different policies of infrastructure in corresponding Leading Function Zone. In view of microeconomics, the infrastructure has effects on firm's location choice by affecting the transport costs and economies of scale. In view of macroeconomics, the effects of infrastructure can bring regional spatial differences and form diversified spatial shapes. In the development of Leading Function Zone, the Optimized Development Zone should raise the levels of infrastructure services to optimize its industrial structure. The Selected Point Development Zone should strength the construction of infrastructure to improve local investment environment. The Restricted Development Zone should develop its infrastructure to promote the growth of locally characteristic industries and ensure population migration orderly. The Prohibited Development Zone should focus on providing necessary public services by infrastructure construction.Sixthly, starting from the requests of promoting urbanization actively and soundly, the paper analyzes the effects of infrastructure on industrialization, rural-urban migration and urban sustainable development. It is concluded that poor urban infrastructure will increase production costs and inhibit the development of modern manufacturing sector and industrialization. So it is significant to improve urban infrastructure to realize the high technology and income equilibrium. The development of rural infrastructure can increase rural income level, reduce the income gaps between urban and rural areas and decrease the pressure of migrating to urban areas. The urban infrastructure is the decisive factor in realizing the sustainable development of urban economic, social and ecological systems.Seventhly, the paper studies the effects of infrastructure on rural economic development and concludes that the rural infrastructure is the decisive factor in agricultural growth, income increase and rural development. The underdeveloped regions in the West, such as Sichuan province, are with lagged rural infrastructure, which inhabited the economic and social development greatly. According to the requests of establishing Socialist New Villages, western rural areas should make synthetic public policies of investment, financing, management and operation to promote construction of rural infrastructure greatly.