ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2021
  • © Brno University of Technology, 2002-2021
  • © University of Latvia, 2002-2021
Baosheng Zhang, Rangkun Qi

ABSTRACT. How to improve urban economic development level has always been the focus of city administration officials and scholars. To explore the influencing factors and mechanism of promoting urban economic development, using the panel data of 285 prefecture-level cities in China during 2000-2018 and the fixed-effect model, the influences of transportation infrastructure and innovation capability on urban economic development level and the mediating effect of innovation capability were analysed. Results reveal that complete transportation infrastructure can significantly elevate urban economic development levels. Urban innovation capability is enhanced by the economic hub function of complete transportation infrastructure, thereby facilitating urban economic development. Moreover, the influence of transportation infrastructure on urban economic development level varies with urban industrial base and high-speed rail status, which is stronger in cities with weak industrial base or high-speed rail. In cities with strong industrial base and high-speed rail, the function of economic hub in gathering human capital is stronger, as well as the mediating effect of innovation capability on improving urban economic development level. The conclusions can enrich and perfect the theory of urban economic development and provide policy suggestions for city administration officials.

KEYWORDS:  transportation infrastructure, innovation, urban economic development, hub effect.

JEL classification:  L91, O18,. R11.

4Acknowledgement:  This study was supported by the National Social Science Fund of China (General Program, No. 17BJL056), Program for Innovative Research Team (in Science and Technology) in University of Henan Province (No. 19IRTSTHN016) and Major project of applied research of philosophy and social sciences in colleges and universities of Henan Province (No. 2019-YYZD-13).

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Scholarly papers Transformations in Business & Economics
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