Investing in Public Infrastructure Boosts Chinese Provinces' Economic Performance.
The study looked at how public infrastructure affects costs and performance in Chinese provinces from 1979 to 2018. They found that investing in public infrastructure lowers costs in all provinces. Initially, there was not enough investment in infrastructure, but after 2010, there was too much. Infrastructure is like a replacement for labor, private capital, and other inputs. While public infrastructure helps a bit with productivity, private capital and other inputs are more important for making workers more productive.