Research On The Common Prosperity Effect Of New Infrastructure In China

Achieving common prosperity is the essential requirement of socialism with Chinese characteristics and the sure path to Chinese-style modernization.The Communist Party of China has taken a steady step toward common prosperity for all people by leading the people to achieve the first 100-year goal,eliminating absolute poverty and building a moderately prosperous society in all aspects.Behind the rapid economic growth since the Reform and Opening,the income disparity between regional and urban-rural residents has still not been fundamentally resolved.Therefore,in the new historical stage of solidly promoting common prosperity,preventing largescale return to poverty,solving the problem of relative poverty,steadily expanding the middleincome group and controlling the income gap within a reasonable range are tasks that need to be accomplished in the current socio-economic development process,and are of great significance in exploring the path to achieve common prosperity for all the people.Against the background of the booming digital era,new infrastructure has gradually become an indispensable new force in the pursuit of high-quality development and the process of promoting common prosperity.As the development of new infrastructure coincides with the solid promotion of common prosperity,the country should seize the opportunity of new infrastructure development to alleviate the unbalanced and insufficient conflicts and help achieve common prosperity.Based on the existing research results on the realization path of common prosperity,this paper explores the common prosperity effect of new infrastructure and explores its effect mechanism.First,we construct a theoretical model and framework,introduce new infrastructure into the Cobb Douglas production model,argue the relationship between new infrastructure and common prosperity in terms of output growth and income disparity,and propose a theoretical mechanism for the impact of new infrastructure on common wealth.Second,the level of common prosperity in each province is measured based on macro panel data of provinces and cities from 2006 to 2020 and micro-level China Household Tracking Survey(CFPS)data from 2010 to 2018,respectively.Then,panel fixed-effects models combined with instrumental variables method and multilayer linear model(HLM)are used to estimate the effect of new infrastructure on common prosperity at macro and micro levels,respectively.In addition,heterogeneity analysis is conducted based on the type of new infrastructure,regional differences,and individual differences,and the path mechanism of the impact of new infrastructure on common prosperity is verified through the mediating effect model.Finally,considering the real-time lag,spatial correlation,and stage growth of new infrastructure,the lag effect model,spatial econometric model,and threshold effect model are further constructed to extend the discussion.In summary,the effect of new infrastructure on common prosperity in China is examined.The results show that new infrastructure has a significant common prosperity effect and can establish a long-term mechanism to contribute to common prosperity by adjusting the employment structure and promoting resource allocation and technological progress.The type of new infrastructure,regional differences,and micro-individual differences can cause heterogeneous coprosperity effects of new infrastructure.In addition,the effect of new infrastructure on common prosperity has a time lag,a significant positive spatial spillover,and its spillover effect is strongly correlated with distance.The co-prosperity effect of new infrastructure generates structural changes,and its effect is significantly increased after regions cross the economic development threshold,the science and technology R&D threshold,and the urbanization threshold.Therefore,based on the findings of the study,it is recommended to maintain the intensity of new infrastructure investment,reasonably adjust the input structure,coordinate the regional layout,and pay attention to individual differences;improve employment incentive policies,help the formation of new employment forms such as casual labor employment,widely guide industries to expand the degree of integration and use of new infrastructure,create an atmosphere of R&D and innovation,build an innovation platform for industry-university-research,and other multi-dimensional paths to achieve common prosperity,and strengthen the construction of inter-regional interaction and collaboration system to give full play to the common prosperity effect of new infrastructure.