Is transportation improving urbanization in China?

This study applies the rolling-window causality test to analyze the interaction between transportation infrastructure and urbanization in China. Our results obviously support search-matching theory in that transportation infrastructure exerts positive effects on urbanization in sub-sample periods. Urbanization does not Granger cause transportation infrastructure development except for the 1977-1980 period, when urbanization exerted negative effects on transportation infrastructure. The transportation structure is inadequate, and rational allocation of transportation resources is needed to improve the level of urbanization. This means that transportation improves urbanization due to government investment and regional integration. Development of transportation infrastructure has been rapid, which improved urbanization during the Great Cultural Revolution period. Urbanization urgently needs to keep up with the development of traffic infrastructure construction by adding to traffic investment. Transportation infrastructure requires whole planning, a unified layout, and rational adjustment of the transportation structure.

Automated summary

The study shows that transportation infrastructure has a positive impact on urbanization, with urbanization not causing the development of transportation infrastructure. However, rational resource allocation is needed to improve the level of urbanization.