01859cas a2200241 a 4500 AALejournalIMF018953 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484389584 1018-5941 BD-DhAAL BD-DhAAL Yang, Yang. Transport Infrastructure, City Productivity Growth and Sectoral Reallocation : Evidence from China / Yang Yang. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (63 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the impact of highway expansion on aggregate productivity growth and sectoral reallocation between cities in China. To do so, I construct a unique dataset of bilateral transportation costs between Chinese cities, digitized highway network maps, and firm-level census. I first derive and estimate a market access measure that summarizes all direct and indirect impact of trade costs on city productivity. I then construct an instrumental variable to examine the causal impact of highways on economic outcomes and the underlying channels. The results suggest that highways promoted aggregate productivity growth by facilitating firm entry, exit and reallocation. I also find evidence that the national highway system led to a sectoral reallocation between cities in China. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2018/276 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/276/001.2018.issue-276-en.xml IMF e-Library