Network infrastructure and economic growth

This paper analyses the effect of network infrastructure imposed on economic growth in China. It also analyses the relationship between network infrastructure and economic growth. And the role Chinese network infrastructure play in economic growth course is discussed in this paper with modified secondary CES Production Function with three factors. Data from 1994 to 2007 in China are utilized and related parameters are selected in accordance with the characteristics of Chinese network infrastructure. The results obtained indicate that it is a general trend to allocate more resources in Chinese network infrastructure industry. Especially, more resources should be allocated to develop and utilize new technology and scarce human resources instead of hardware construction.