A study on the impact of high-speed rail on the consumption structure of urban and rural residents in China

Yafei Xu and Guoli Ou

PLOS ONE, 2024, vol. 19, issue 10, 1-23

Abstract: Consumption is crucial to individual well-being and national economic development. This study investigates whether high-speed rail (HSR) influences consumption expenditure (CE) and consumption structure (CS) of urban and rural Chinese citizens. Using panel data from 2003 to 2019 and econometric models, this study finds that: (1) HSR significantly increases CE for both urban and rural residents, promotes CS upgrades in rural areas, but inhibits CS upgrades in urban areas. These results remain robust after extensive testing. (2) HSR’s impact on urban consumption is relatively focused and singular, whereas its effect on rural consumption is dispersed and extensive. Additionally, the impact of HSR on consumption exhibited significant delays and regional characteristics. (3) Mediation analysis reveals that HSR significantly enhances urban and rural CE and facilitates rural CS upgrades through market, price, and income effects. However, it also triggers housing price increases, impeding urban CS upgrades. This study provides important references for the government to optimize transportation infrastructure investments, promote balanced economic development between urban and rural areas, and enhance residents’ well-being.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0307947

DOI: 10.1371/journal.pone.0307947

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