TY - JOUR AU - Banerjee,Abhijit AU - Duflo,Esther AU - Qian,Nancy TI - On the Road: Access to Transportation Infrastructure and Economic Growth in China JF - National Bureau of Economic Research Working Paper Series VL - No. 17897 PY - 2012 Y2 - March 2012 UR - http://www.nber.org/papers/w17897 L1 - http://www.nber.org/papers/w17897.pdf N1 - Author contact info: Abhijit Banerjee MIT Department of Economics E52-252d 50 Memorial Drive Cambridge, MA 02142-1347 Tel: 617/253-8855 Fax: 617/253-1330 E-Mail: banerjee@mit.edu Esther Duflo Department of Economics MIT, E52-252G 50 Memorial Drive Cambridge, MA 02142 Tel: 617/258-7013 Fax: 617/253-6915 E-Mail: eduflo@mit.edu Nancy Qian Department of Economics Yale University 27 Hillhouse Avenue New Haven, CT 06520-8269 E-Mail: nancy.qian@yale.edu AB - This paper estimates the effect of access to transportation networks on regional economic outcomes in China over a twenty-period of rapid income growth. It addresses the problem of the endogenous placement of networks by exploiting the fact that these networks tend to connect historical cities. Our results show that proximity to transportation networks have a moderate positive causal effect on per capita GDP levels across sectors, but no effect on per capita GDP growth. We provide a simple theoretical framework with empirically testable predictions to interpret our results. We argue that our results are consistent with factor mobility playing an important role in determining the economic benefits of infrastructure development. ER -