Impact Of Transportation Infrastructure On Regional Economy

As a crucial part of government expenditure,the purpose of transportation infrastructure investment is to promote the circulation of people,goods and information,and it is the key medium for all regions to strengthen their external relations.A sophisticated transportation system will provide strong support for the development of regional economy.The purpose of this paper is to analyze the economy data of Jiangsu,Zhejiang province and Shanghai from 1978 to 201 7to figure out the effect of transportation infrastructure of the Yangtze River Delta.In the introduction of this paper,we illustrate the significance of the study,through the analysis of the actual situation of traffic infrastructure construction in the Yangtze River Delta and the theory of traffic economics.Then,in the part of literature review,several different viewpoints about the relationship between traffic infrastructure and regional economy are elaborated through the research conclusions of many scholars at home and abroad.Based on the real situation of Jiangsu,Zhejiang and Shanghai region,this paper constructs the variables representing the transportation infrastructure,and makes it as an input element in calculating the total output of the economy.Cointegration analysis demonstrates that there is a stable long-term relationship between the total output of regional economy in Jiangsu,Zhejiang and Shanghai region and the variables of traffic infrastructure.Then we perform multivariate linear regression to test the significant positive propulsion effect of the construction of transportation infrastructure in Jiangsu,Zhejiang and Shanghai on the regional economy.Comparing the situation of Jiangsu,Zhejiang and Shanghai with Shanxi Gansu Qinghai areas,we find that the state of regional economic development is proportional to the degree of regional transportation infrastructure construction.In the dynamic stochastic general equilibrium(DSGE)analysis,the paper constructs a three-sector economy of the family,enterprise and transportation sector.It takes the traffic infrastructure impact as the exogenous impact of the DSGE model and makes a dynamic study.Families seeks to maximize the lifelong utility under the budget constraint.And firms seek to maximize their profit.Also,the transportation department uses funds and land as input factors for production.Based on these facts,the model is solved and calibrated.Furthermore,Bayesian estimation is used to verify the results of parameter calibration.In the end,the model in this paper is compared with the real economy in Jiangsu,Zhejiang and Shanghai.The conclusion is that the DSGE model constructed in this paper can properly reflect the real economy of Jiangsu,Zhejiang and Shanghai.However,there are some deficiencies in the description of some specific variables.In this model,H-P filter is used to test the procyclicality of the transportation infrastructure.And in the impulse response,we verify that the exogenous shock of transportation infrastructure on the regional economy is positive.Moreover,this effect is fast and intense and will slowly converge to the equilibrium state.