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Does high‐speed rail connection really promote local economy? Evidence from China’s Yangtze River Delta

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  • Yanyan Gao
  • Shunfeng Song
  • Jun Sun
  • Leizhen Zang

Abstract

High‐speed rail (HSR) has led to a transportation revolution in China. This paper uses the county‐level panel data of China’s Yangtze River Delta to investigate the effect of HSR connection on local economy. To address the issue of endogenous HSR route placement, we use a straight‐line strategy to construct potential HSR connection variables as instrumental variables of the actual HSR connection. Both the difference‐in‐differences and instrumental variable methods show that HSR connection impedes local economy, especially in peripheral regions. The impediment effect is channeled through population reallocation from peripheral to core areas and the restructuring of industries.

Suggested Citation

  • Yanyan Gao & Shunfeng Song & Jun Sun & Leizhen Zang, 2020. "Does high‐speed rail connection really promote local economy? Evidence from China’s Yangtze River Delta," Review of Development Economics, Wiley Blackwell, vol. 24(1), pages 316-338, February.
    • Handle: RePEc:bla:rdevec:v:24:y:2020:i:1:p:316-338
    DOI: 10.1111/rode.12642
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    Cited by:

    1. Xiaoqian Liu & Han Li & Yongzhi Sun & Chang’an Wang, 2022. "High‐speed railway and urban productivity disparities," Growth and Change, Wiley Blackwell, vol. 53(2), pages 680-701, June.
    2. Baek, Jisun & Park, WooRam, 2022. "The impact of improved passenger transport system on manufacturing plant productivity," Regional Science and Urban Economics, Elsevier, vol. 96(C).
    3. Fan, Xiaomin & Xu, Yingzhi, 2024. "How does the opening of high-speed railway affect the regional pollution gap in China? From the perspective of knowledge spillover," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    4. Lei Zheng & Xuemeng Guo & Libin Zhao, 2021. "How Does Transportation Infrastructure Improve Corporate Social Responsibility? Evidence from High-Speed Railway Openings in China," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
    5. Wang, Yao & Dong, Weijia, 2022. "How China's high-speed rail promote local economy: New evidence from county-level panel data," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 67-81.
    6. Xuelu Xu & Mingbo Zheng, 2023. "High-speed rail construction and urban innovation disparity in China: the role of internet development," Economic Change and Restructuring, Springer, vol. 56(5), pages 3567-3599, October.
    7. Zhao, Jianting & Sun, Guibo & Webster, Chris, 2022. "Does China-Pakistan Economic Corridor improve connectivity in Pakistan? A protocol assessing the planned transport network infrastructure," Journal of Transport Geography, Elsevier, vol. 100(C).
    8. Huang, Runyao & Shen, Ziheng & Wang, Hongtao & Xu, Jin & Ai, Zisheng & Zheng, Hongyuan & Liu, Runxi, 2021. "Evaluating the energy efficiency of wastewater treatment plants in the Yangtze River Delta: Perspectives on regional discrepancies," Applied Energy, Elsevier, vol. 297(C).
    9. Chen, Qifei & Wang, Meng, 2022. "Opening of high-speed rail and the consumer service industry: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 31-45.
    10. Jia, Ruining & Shao, Shuai & Yang, Lili, 2021. "High-speed rail and CO2 emissions in urban China: A spatial difference-in-differences approach," Energy Economics, Elsevier, vol. 99(C).
    11. Yu, Lamont Bo & Tran, Trang My & Lee, Wang-Sheng, 2023. "Bridging the gap: Assessing the effects of railway infrastructure investments in Northwest China," China Economic Review, Elsevier, vol. 82(C).
    12. Ma, Qifei & Jia, Peng & She, Xinran & Haralambides, Hercules & Kuang, Haibo, 2021. "Port integration and regional economic development: Lessons from China," Transport Policy, Elsevier, vol. 110(C), pages 430-439.
    13. Gao, Yanyan & Zheng, Jianghuai & Wang, Xin, 2022. "Does high-speed rail reduce environmental pollution? Establishment-level evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    14. Hiramatsu, Tomoru, 2023. "Inter-metropolitan regional migration galvanized by high-speed rail: A simulation analysis of the Linear Chuo Shinkansen line in Japan," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    15. Yanyan Gao & Yongqing Nan & Shunfeng Song, 2022. "High‐speed rail and city tourism: Evidence from Tencent migration big data on two Chinese golden weeks," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1012-1036, September.
    16. Jun Chen & Jia Liu, 2021. "Incentive and uncertainty: the simultaneous effects of demand on innovation," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 7743-7757, September.
    17. Xiaoxuan Zhang & John Gibson, 2024. "Local economic effects of connecting to China's high-speed rail network: Evidence from spatial econometric models," Working Papers in Economics 24/03, University of Waikato.
    18. Chen, Jun, 2021. "High-speed rail and energy consumption in China: The intermediary roles of industry and technology," Energy, Elsevier, vol. 230(C).

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