Modeling of economic effect of transport investment in China

Analysis of the relationship between transport investment and economic development is critical for making decision of investment, but up to now there is no satisfactory theory or model. In this paper, we try to make a quantitative analysis of the economic effect of China's transport investment in the past 50 years, and analyze its lag effect with a model. The results show that transport investment has an effect on the economic growth in a nonlinear manner and the effect lags behind for a phase of about five years, which tends to be shorter and stronger.