The Impact of Transportation Infrastructure and Whole Region’s Urbanization on Economic Development

This study aims to evaluate the economic impact of transportation infrastructure and whole-region urbanization from the perspective of new economic geography. A spatial panel model was constructed based on the panel data of transportation infrastructure, urbanization, and economic development in 30 provinces and municipalities in China from 1997 to 2016. In this model, time-lag effects and spatial-lag effects were considered. The results show, in underdeveloped areas, transportation infrastructure, living environment, and medical and health conditions have a significant role in promoting economic development. In developed areas where transportation infrastructure has been essentially mature, the direct or indirect effect of transportation infrastructure on economic development is insignificant; however, the living environment, medical and sanitary conditions, and residents’ housing level still have a significant role in promoting economic development.