The Impact of Expressway Investments on a Regional Economy: A Case Study of Guangdong Province

This paper explores the impact of expressway investment on the economic development of the various regions of Guangdong province in the following three aspects: the degree of contribution of investment to economic growth, the lagging effect of investment, and the efficiency of investment. Study shows that in Guangdong province a close correlation exists between expressway investment and economic growth. Among the economic factors in the various regions, there is a considerable difference in their contribution to the economic development of the regions. Expressway capital stock contributes markedly more to the economic growth of the eastern, western and northern regions than to that of the Pearl River Delta Region. Moreover, the lagging effect of expressway investment has a longer duration in the eastern, western and northern regions than in the Pearl River Delta Region. Among the various regions of the province, the expressway investment in the western region is the most efficient. Expressway investment is excessive in the Pearl River Delta Region, whereas that in the eastern and northern regions is chronically underfunded. And finally, as a further point of observation, the use and management of expressway funds in the eastern and northern regions need to be optimized.