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Effect of high-speed rail on entrepreneurial activities: Evidence from China

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  • Liu, Mengsha
  • Jiang, Yan
  • Wei, Xiaokun
  • Ruan, Qingsong
  • Lv, Dayong

Abstract

Utilizing the launching of the high-speed railway network (HSR) in China as a quasi-natural shock, this paper examines the impact of the HSR connection on entrepreneurial activities in peripheral cities. We find that peripheral cities experience a reduction in the number of newly-registered firms after being connected to the HSR network, suggesting that the HSR network is disruptive to entrepreneurial activities in peripheral cities. In addition, the decrease in entrepreneurial activities can be explained by outflows in capital and high-skilled labor caused by HSR. Moreover, the adverse effect of HSR network is more pronounced for service sectors, peripheral cities closer to central cities, and peripheral cities in eastern or middle regions. Our work complements related studies on the consequences of the HSR network and has important implications for spurring entrepreneurial activities and economic growth.

Suggested Citation

  • Liu, Mengsha & Jiang, Yan & Wei, Xiaokun & Ruan, Qingsong & Lv, Dayong, 2023. "Effect of high-speed rail on entrepreneurial activities: Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    • Handle: RePEc:eee:soceps:v:87:y:2023:i:pa:s0038012123000381
    DOI: 10.1016/j.seps.2023.101538
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