ABSTRACT
There are different categories of infrastructure. According to Gramlich (1994), infrastructure is generally capital intensive, large-scale facilities with natural monopoly properties, e.g. facilities such as transportation, irrigation, communications, and water, electricity and gas, etc. They usually have strong externalities. Since studies that review domestic and foreign literature on infrastructure are quite abundant already, e.g. Gramlich (1994) and Gao (2005), this chapter will not attempt to provide a comprehensive literature collection. Its aim is to estimate the socioeconomic benefits from Chinese infrastructure investment in recent years through integrating credible results from relevant literature (especially Chinese literature) and further to make a judgment on investment efficiency. The chapter also intends to provide directional suggestions to future infrastructure investment.
