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The Economic Diffusion Radius of High-Speed Railway Stations

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Listed:
  • Liang, Fangzhi
  • Yao, Zhenye
  • Yang, Danqin
  • Xu, Hanwen

Abstract

We explore the economic diffusion radius of high-speed railway (HSR) stations. Using spatial differences-in-differences (DID) method, we find that the openings of HSR stations can promote companies’ performance within 20 kms. We also observe a heterogeneity of the effect in different administrative divisions, with a positive impact on surrounding companies in the same city as the nearest station (the "Diffusion Effect"), and a negative impact on companies in neighboring city (the "Backwash Effect"). Our paper helps policy makers better utilize the infrastructure of HSR. Furthermore, the spatial DID method offers a new perspective to address endogeneity in HSR studies.

Suggested Citation

  • Liang, Fangzhi & Yao, Zhenye & Yang, Danqin & Xu, Hanwen, 2023. "The Economic Diffusion Radius of High-Speed Railway Stations," Finance Research Letters, Elsevier, vol. 55(PB).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003720
    DOI: 10.1016/j.frl.2023.104000
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    References listed on IDEAS

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    More about this item

    Keywords

    High-speed railway; Economic diffusion radius; Backwash effect; Spatial DID;
    All these keywords.

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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