Can new infrastructure promote regional economic development? An examination based on administrative boundaries

The economic growth of administrative boundaries is often relatively backward due to geographical barriers and administrative divisions. In this study, a dataset comprising 31 Chinese provinces spanning the period 2010 to 2019 is chosen. The ordinary panel model, spatial Durbin model, spatial mediation effect model are used to study the direct effect, spatial spillover effect and mechanisms of new infrastructure on economic growth at administrative boundaries. The results show that new infrastructure positively influences the economic growth of administrative boundaries, and there is a spatial spillover effect. This conclusion holds even after a series of robustness tests and endogenous treatments. The main impact mechanisms are overcoming geographical barriers and mitigating the effects of administrative divisions. The results of the heterogeneity test show that information infrastructure, large-scale provinces, and the eastern region have the most significant effect on economic growth at administrative boundaries. The findings of this paper provide a decision-making basis for optimizing investment in new infrastructure and promoting high-quality economic growth.