High-speed rail, tourist mobility, and firm value

Anqi Zhang, Lihua Liu and Guangqiang Liu

Economic Modelling, 2020, vol. 90, issue C, 108-116

Abstract: Infrastructure is critical to the development of the tourism industry. Although high-speed rail (HSR) is an important component of transportation infrastructure and may reshape tourism activities, little attention has been paid on the impact of HSR on tourism firms’ value. We use a natural quasi-experimental of Chinese cities connected to HSR and difference-in-differences (DID) estimation to show that: (1) HSR substantially increases tourism firms’ value. (2) We introduce dynamic DID and placebo test to further establish causality. (3) A plausible mechanism driving our finding is the tourist mobility with HSR. (4) Our findings are particularly pronounced for small firms and offer theoretical and practical implications to understand tourist mobility and tourism firm value.

Keywords: High-speed rail; Tourism industry; Firm values; China (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:90:y:2020:i:c:p:108-116

DOI: 10.1016/j.econmod.2020.05.004

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