URBAN INFRASTRUCTURE FINANCING AND ECONOMIC PERFORMANCE IN CHINA

Research points to a strong association between infrastructure investment and economic performance. Despite China's great strides in providing basic services, there is increasing disparity among cities of different regions in their ability and performance to finance infrastructure development. Such unevenness has a long-term effect on urban economic growth. This study explores patterns and the expanding range of mechanisms for urban infrastructure financing in general and across the country's regions. It also investigates whether and how infrastructure investment is related to urban economic performance, using lagged variables to demonstrate both short- and medium-term effects. It is clear that such investment has responded to past unmet demands and paved the way for future growth.