Assessing the Impact of Transportation Infrastructure on Rural Residents' Income: Using the Quantile Regression Approach


  • Bin Xu School of Management, China Institute for Studies in Energy Policy, Collaborative Innovation Center for Energy Economics and Energy Policy, Xiamen University, Fujian, 361005, PR China



Highway transportation infrastructure, Railway transportation infrastructure, Wage income, Operating income, Quantile regression model


The impact of transportation infrastructure on farmers’ income has been the focus of attention by government managers and related scholars in recent years. Based on the panel data from 2000 to 2018, this paper uses the quantile regression model to explore the effect of highway and railway transportation infrastructures on wage income and operating income. The findings show that the highway transportation infrastructure makes a minimal contribution to the wage income in Shanghai, Beijing and Zhejiang provinces, because the highway mileage and highway passenger turnover in these provinces are small. However, the operating income in the upper 90th quantile provinces such as Jilin, Heilongjiang, and Zhejiang, receives the biggest impact from the highway transportation infrastructure, because the construction of rural roads in these provinces is growing faster. The impact of railway transportation infrastructure on the wage income in the 10th-25th, 25th-50th and 50th-75th quantile provinces is small, since their railway passenger turnover is less. The railway transportation infrastructure has not played a role in boosting the operating income in these provinces such as Guizhou, Shaanxi, Gansu, Shanxi, Qinghai, and Ningxia. Therefore, each quantile province should formulate specific policies to promote the construction of transportation infrastructure.


Achour, H., Belloumi, M., 2016. Investigating the causal relationship between transport infrastructure, transport energy consumption and economic growth in Tunisia. Renewable and Sustainable Energy Reviews, 56, 988-998.

Ahmed, Z., Asghar, M. M., Malik, M. N., Nawaz, K., 2020. Moving towards a sustainable environment: the dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China. Resources Policy, 67, 101677.

Arbués, P., Baños, J.F., Mayor, M., 2015. The spatial productivity of transportation infrastructure. Transportation Research Part A: Policy and Practice, 75, 166-177.

Barton, M.S., Gibbons, J., 2017. A stop too far: How does public transportation concentration influence neighbourhood median household income?. Urban Studies, 54(2), 538-554.

Branco, J.E.H., Bartholomeu, D.B., Junior, P.N.A., Caixeta Filho, J.V., 2020. Evaluation of the economic and environmental impacts from the addition of new railways to the brazilian's transportation network: An application of a network equilibrium model. Transport Policy,

Cigu, E., Agheorghiesei, D.T., Toader, E., 2019. Transport infrastructure development, public performance and long-run economic growth: a case study for the Eu-28 countries. Sustainability, 11(1), 67.

Engle, R.F., Granger, C.W., 1987. Co-integration and error correction: representation, estimation, and testing. Econometrica: journal of the Econometric Society, 251-276.

Guo, X., Sun, W., Yao, S., Zheng, S., 2020. Does high-speed railway reduce air pollution along highways?-Evidence from China. Transportation Research Part D: Transport and Environment, 89, 102607.

Han, W., Wei, Y., Cai, J., Yu, Y., Chen, F., 2021. Rural nonfarm sector and rural residents’ income research in China. An empirical study on the township and village enterprises after ownership reform (2000-2013). Journal of Rural Studies, 82, 161-175.

Hong, J., Chu, Z., Wang, Q., 2011. Transport infrastructure and regional economic growth: evidence from China. Transportation, 38(5), 737-752.

Huang, Q., Zheng, X., Wang, R., 2022. The Impact of the Accessibility of Transportation Infrastructure on the Non-Farm Employment Choices of Rural Laborers: Empirical Analysis Based on China’s Micro Data. Land, 11(6), 896.

Jiang, X., He, X., Zhang, L., Qin, H., Shao, F., 2017. Multimodal transportation infrastructure investment and regional economic development: A structural equation modeling empirical analysis in China from 1986 to 2011. Transport Policy, 54, 43-52.

Karaca, I., Gransberg, D.D., Jeong, H.D., 2020. Improving the accuracy of early cost estimates on transportation infrastructure projects. Journal of Management in Engineering, 36(5), 04020063.

Khan, H.U.R., Siddique, M., Zaman, K., Yousaf, S.U., Shoukry, A.M., Gani, S., Saleem, H., 2018. The impact of air transportation, railways transportation, and port container traffic on energy demand, customs duty, and economic growth: Evidence from a panel of low-, middle-, and high-income countries. Journal of Air Transport Management, 70, 18-35.

Koenker, R., Bassett Jr, G., 1978. Regression quantiles. Econometrica: journal of the Econometric Society, 33-50.

Korkmaz, M.Ç., Chesneau, C., Korkmaz, Z.S., 2021. A new alternative quantile regression model for the bounded response with educational measurements applications of OECD countries. Journal of Applied Statistics, 1-24.

Kuştepeli, Y., Gülcan, Y., Akgüngör, S., 2012. Transportation infrastructure investment, growth and international trade in Turkey. Applied Economics, 44 (20), 2619-2629.

Li, Y., DaCosta, M.N., 2013. Transportation and income inequality in China: 1978–2007. Transportation Research Part A: Policy and Practice, 55, 56-71.

Liang, J., Koo, K.M., Lee, C.L., 2021. Transportation infrastructure improvement and real estate value: impact of level crossing removal project on housing prices. Transportation, 1-43.

Liang, Y., Zhou, K., Li, X., Zhou, Z., Sun, W., Zeng, J., 2020. Effectiveness of high-speed railway on regional economic growth for less developed areas. Journal of Transport Geography, 82, 102621.

Lin, B., Chen, Y., 2020. Transportation infrastructure and efficient energy services: A perspective of China's manufacturing industry. Energy Economics, 89, 104809.

Lin, B., Xu, B., 2018. Factors affecting CO2 emissions in China’s agriculture sector: A quantile regression. Renewable and sustainable energy reviews, 94, 15-27.

Magazzino, C., Mele, M., 2020. On the relationship between transportation infrastructure and economic development in China. Research in Transportation Economics, 100947.

Maparu, T.S., Mazumder, T.N., 2017. Transport infrastructure, economic development and urbanization in India (1990–2011): Is there any causal relationship?. Transportation research part A: policy and practice, 100, 319-336.

Mohmand, Y.T., Wang, A., Saeed, A., 2017. The impact of transportation infrastructure on economic growth: empirical evidence from Pakistan. Transportation Letters, 9(2), 63-69.

O’Donoghue, C., Buckley, C., Chyzheuskaya, A., Green, S., Howley, P., Hynes, S., Ryan, M., 2021. The spatial impact of rural economic change on river water quality. Land Use Policy, 103, 105322.

Outay, F., Mengash, H.A., Adnan, M., 2020. Applications of unmanned aerial vehicle (UAV) in road safety, traffic and highway infrastructure management: Recent advances and challenges. Transportation research part A: policy and practice, 141, 116-129.

Peter, S., Rita, E., Edith, M., 2015. The impact of road transportation infrastructure on economic growth in Nigeria. International Journal of management and commerce innovations, 3(1), 673-680.

Pradhan, R.P., 2019. Investigating the causal relationship between transportation infrastructure, financial penetration and economic growth in G-20 countries. Research in Transportation Economics, 78, 100766.

Pradhan, R.P., Bagchi, T.P., 2013. Effect of transportation infrastructure on economic growth in India: the VECM approach. Research in Transportation Economics, 38(1), 139-148.

Rode, P., Terrefe, B., da Cruz, N.F., 2020. Cities and the governance of transport interfaces: Ethiopia's new rail systems. Transport Policy, 91, 76-94.

Solow, R.M., 1956. A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), 65-94.

Temudo, M.P., Cabral, A.I., Talhinhas, P., 2020. Urban and rural household energy consumption and deforestation patterns in Zaire province, Northern Angola: A landscape approach. Applied Geography, 119, 102207.

Tonn, G., Reilly, A., Czajkowski, J., Ghaedi, H., Kunreuther, H., 2021. US transportation infrastructure resilience: Influences of insurance, incentives, and public assistance. Transport Policy, 100, 108-119.

Umar, M., Ji, X., Kirikkaleli, D., Xu, Q., 2020. COP21 Roadmap: Do innovation, financial development, and transportation infrastructure matter for environmental sustainability in China?. Journal of environmental management, 271, 111026.

Ventura, R.V., Cabo, M., Caixeta, R., Fernandes, E., Aprigliano Fernandes, V., 2020. Air Transportation Income and Price Elasticities in Remote Areas: The Case of the Brazilian Amazon Region. Sustainability, 12(15), 6039.

Xu, B., Lin, B., 2018. Do we really understand the development of China's new energy industry? Energy economics, 74, 733-745.

Xu, B., Lin, B., 2023. Investigating the Determinants of the Growth of the New Energy Industry: Using Quantile Regression Approach. The Energy Journal, 44(2),1-13.

Yang, Z., Li, C., Jiao, J., Liu, W., Zhang, F., 2020a. On the joint impact of high-speed rail and megalopolis policy on regional economic growth in China. Transport Policy, 99, 20-30.

Yang, Z., Sun, Y., Lee, P.T.W., 2020b. Impact of the development of the China-Europe Railway Express–A case on the Chongqing international logistics center. Transportation Research Part A: Policy and Practice, 136, 244-261.

Yu, Z., Zhao, P., 2021. The factors in residents' mobility in rural towns of China: Car ownership, road infrastructure and public transport services. Journal of Transport Geography, 91, 102950.