Influence Of Public Infrastructure Investment On The Interprovincial Total Factor Productivity In China: Theoretical And Empirical Analysis

Public infrastructure is the material basis of national community economic development, and it's the significant factor in promoting regional productivity growth and constructing regional comparative advantage. The paper tried to analyze the influence of public infrastructure investment on the regional productivity from the perspective of economics. Firstly, it stated the connotation of public infrastructure and its investment, and it analyzed the influence of public infrastructure investment on productivity by adopting the method of quantitative research. Secondly, the text constructed theoretical model about the influence of public infrastructure investment on productivity, then put forward two hypotheses to be tested. Finally, it analyzed the investment scale and current situation of public infrastructure in China combined with the panel date of 28 provinces(municipalities and cities) during 1994-2007. Then, it studied the influence of overall and regional public infrastructure investment on the interprovincial total factor productivity. Finally, some policy proposals on how to improve the construction of infrastructure in China were put forward.The results showed that the interprovincial public infrastructure investment had a significant correlation with the total factor productivity index and the technical progress index in general, while it had a significant correlation with the technical efficient index. There were different influences of the different public infrastructure industries on the interprovincial total factor productivity and its decomposition. Public infrastructure investment in eastern part had a positive effect on the total factor productivity, while the public infrastructure investment in middle part and western part had a negative effect.