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Public Infrastructure Investment and Domestic Trade Integration in China

Yingming Zhu et al.

Hacienda Pública Española / Review of Public Economics2025https://doi.org/10.7866/hpe-rpe.25.2.2article
AJG 1
Weight
0.41

What the paper says

This research constructs a two-region dynamic general equilibrium (DGE) model. Utilizing numerical simulations, it thoroughly reveals the mechanisms through which public infrastructure investment affects the integration of domestic trade and further examines the determining factors of the effects of public infrastructure investment on domestic trade integration. The research indicates that public infrastructure investment has a significant inverted U-shaped impact on domestic trade integration, meaning there exists an optimal scale of public infrastructure investment to maximize domestic trade integration. This is due to the linkage mechanism of public infrastructure investment affecting transaction efficiency in production trade, specialization of production, trade home bias, and thereby influencing inter-regional economic and trade relations as well as domestic market integration. The substitutability of products, congestion of public infrastructure services, and labor friction (overhead labor) significantly affect the effects of public infrastructure investment on domestic trade integration, with notable regional disparities. The findings have important implications for public infrastructure investment policies aimed at promoting the development of domestic trade integration.

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Cite this paper

https://doi.org/https://doi.org/10.7866/hpe-rpe.25.2.2

Or copy a formatted citation

@article{yingming2025,
  title        = {{Public Infrastructure Investment and Domestic Trade Integration in China}},
  author       = {Yingming Zhu et al.},
  journal      = {Hacienda Pública Española / Review of Public Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.7866/hpe-rpe.25.2.2},
}

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Public Infrastructure Investment and Domestic Trade Integration in China

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Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.