Economics at your fingertips  

High‐speed railway and urban productivity disparities

Xiaoqian Liu, Han Li, Yongzhi Sun and Chang’an Wang

Growth and Change, 2022, vol. 53, issue 2, 680-701

Abstract: Large scale transport infrastructure constructions connect both large metropolitan cities as well as small peripheral cities. Transportation cost reductions facilitate the reallocation of labor factors between these asymmetric regions. Whether the results of labor reallocation narrow down the inter‐regional considerable discrepancies or reinforce the disparities in productivity is uncertain. This paper explores the opening of China’s High‐Speed Railway (HSR) program as a quasi‐natural experiment to estimate the causal effect of the HSR connection on urban disparities in labor productivity. To address the selection bias caused by non‐random placements of HSR routes, we eliminate all metropolitan city nodes and construct a minimum spanning tree as the instrumental variable. Compared with peripheral cities not connected by the HSR, the labor productivity in connected peripheral cities decreases by 12.6% after the opening of the HSR. Using China Migrants Dynamic Survey (CMDS), we further find that the decline of labor productivity is driven by the relocation of high‐skilled labor from the HSR connected peripheral cities to the central cities. This article concludes that the HSR widens the productivity disparities between the large central metropolitan and small peripheral cities connected.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0017-4815

Access Statistics for this article

Growth and Change is currently edited by Dan Rickman and Barney Warf

More articles in Growth and Change from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2022-07-02
Handle: RePEc:bla:growch:v:53:y:2022:i:2:p:680-701