Spillover Effect of Agricultural Infrastructure Investment-A Case Study in Hubei

Based on the 1994-2015 agricultural input and output statistics on 16 selected cities in Hubei, the agricultural total factor productivity (TFP) of the province was calculated using the DEA-Malmquist indexing methodology. The long-term equilibrium model and short-term error correction model were established. From the perspective of TFP, the spillover effect on the regional agriculture by the infrastructure investments was studied.The results showed both long-and short-term investments on irrigation, rural roads and rural electricity had positive spillover effects. Hence, the provincial government should continue to invest in the infrastructures, strengthen the coordination on capital infusions, as well as establish an efficient mechanism on long-term investment for future development.