The impact of transportation infrastructure on the regional economic integration in China:A CGE analysis

Abstract

Highway infrastructure is crucial for regional economic development, improving market accessibility, trade efficiency, and industrial growth. This study employs a county-level computable general equilibrium (CGE) model, adapted from the TERM model, to analyze the economic effects of highway expansion in Gansu Province. The results show that provincial highways significantly enhance intra-regional trade and local industry development, particularly in agriculture and manufacturing, while national highways contribute more to inter-regional trade and long-term industrial transformation. Policy recommendations emphasize coordinated investment strategies, ensuring alignment between national and provincial highways. Infrastructure planning should also consider regional economic structures and sector-specific needs, integrating smart transportation technologies to maximize economic benefits. Future research should extend this analysis to other provinces to compare transportation infrastructure effects across diverse economic regions.