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Asymmetric Effect of Infrastructure on Export Product Quality——Evidence from China's Provincial Data

【Authors】
MA Shuqin, ZOU Zhiwen, SHAO Yujia & WANG Jianghang
【WorkUnit】
Zhejiang Gongshang University, 310018.
【Abstract】

Infrastructure construction is an “accelerator” for the rapid development of China's economy, but whether it can contribute to the high-quality development of China's economy and become a “quality improver” for regional export products or not is worth further study. Under the framework of heterogeneity, this paper probes into the economic logic between infrastructure and regional export product quality in 31 provinces or municipalities of China from 2006 to 2015. Given the constraints of economic geography across regions, we analyze the practical landscape between three kinds of economic infrastructure, i.e., transportation, energy and information, and regional export product quality. Benchmark regression reveals infrastructure endowments' construction induces the upgrading of regional export product quality and demonstrates the upgrading path, which show dual heterogeneity across varieties and regions. Further, threshold regression demonstrates threshold nexus between economic infrastructure level and regional export product quality. Specific infrastructure exerts a significant “lock-in” effect on specific regional export product quality. Clarifying the economic logic between the two attributes is conducive to addressing China's current medium low lock in along value-chain trade, alleviating contract constraints to trade value's upgrading, tapping the potential of regional economic geography endowments, and advancing high-quality development of China's economy.

JEL:H54, F19

【KeyWords】
Infrastructure Construction, Export Product Quality, Asymmetric Effect, Threshold Effect