Efficiency and Mechanism of Highway Construction to Promote Common Prosperity

Abstract:

This research uses the project data of new expressways from 2012 to 2018 to explore the efficiency and mechanism of expressway construction to promote common prosperity. The empirical results show that expressways can achieve common prosperity by increasing the income level of residents and narrowing the income gap， and urbanization and industrial structure upgrading play an intermediary role. This study shows that although the marginal benefits of highways on the income level are diminishing， the marginal benefits on the income gap between residents are increasing. The contribution of this paper is to deepen the theory of the realization way of common prosperity and demonstrate the necessity of "moderately advanced construction" expressway.