Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/163209
Year of Publication: 
2017
Series/Report no.: 
ADBI Working Paper No. 714
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
This paper attempts to distinguish and estimate the direct and indirect effects of infrastructure on firm productivity. The latter arises from the infrastructure-agglomeration link and has been largely overlooked in the literature on infrastructure. An analytical framework is then developed to estimate both effects. Finally, empirical results are obtained using large-scale firm-level survey data from the People's Republic of China (PRC). Major findings include: (1) all the three kinds of infrastructure - road, telecommunication servers, and cable - are found to directly promote firm productivity; (2) they also exert a positive indirect effect on firm productivity through the agglomeration channel; and (3) the empirical results are robust to different agglomeration indicators and different subsamples.
Subjects: 
infrastructure
indirect effect
productivity
agglomeration
PRC
JEL: 
D21
D23
L1
R12
R3
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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