This paper provides empirical evidence on the links between infrastructure investment
and economic growth in China. Using panel data from a sample of 24 Chinese provinces
(excluding municipalities) throughout the 1985 to 1998 period, the estimation of a growth
model shows that, besides differences in terms of reforms and openness, geographical
location and infrastructure endowment did account significantly for observed differences in
growth performance across provinces. The results indicate that transport facilities are a key
differentiating factor in explaining the growth gap and point to the role of telecommunication
in reducing the burden of isolation.