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Impact of high-speed rail on urban residents’ consumption in China—from a spatial perspective

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  • Zhang, Yanyan
  • Ma, Wenliang
  • Yang, Hangjun
  • Wang, Qiang

Abstract

This paper studies the impact of high-speed rail (HSR) on the consumption of urban residents from a spatial perspective. Using the panel data of 285 prefecture-level cities in China from 2003 to 2017, we examine the effects of HSR operations on consumption density. In order to solve the spatial correlation problem and better reflect the spillover effect, we use the spatial Durbin model to do the empirical analysis. The results show that, first, the opening of HSR significantly affects consumption density. This effect is brought about by the local and spatial effects of HSR. Secondly, HSR transmits the competition of consumption demand and resources, which promotes the intensification of consumption competition among cities. This competition is manifested as competition between cities with similar levels of economic development. In addition, the study finds that HSR has different effects on consumption density in cities in eastern, central, and western China due to different levels of urban economic development and inter-city relationships. Policy makers in Chinese cities need to adjust their consumption guidance strategies to promote local consumption according to the characteristics of different regions.

Suggested Citation

  • Zhang, Yanyan & Ma, Wenliang & Yang, Hangjun & Wang, Qiang, 2021. "Impact of high-speed rail on urban residents’ consumption in China—from a spatial perspective," Transport Policy, Elsevier, vol. 106(C), pages 1-10.
    • Handle: RePEc:eee:trapol:v:106:y:2021:i:c:p:1-10
    DOI: 10.1016/j.tranpol.2021.03.017
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