Highways, railways and entrepreneurship in peripheral cities: evidence from China

Jun Chen and Xiaowen Zeng

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 2, 2106505

Abstract: Peripheral cities are more susceptible to transportation infrastructure than core cities in terms of entrepreneurial activities. We use market access approach to estimate the impacts of highways and high-speed railways on entrepreneurship in the small and medium-sized cities in China under knowledge spillover entrepreneurship framework. The results show that the increased market potential caused by highways and high-speed railways significantly improves the entrepreneurial performance of peripheral cities. The entrepreneurship effects of highways are stronger than high-speed railways, especially for these cities that are relatively closer to core cities. On the contrary, the entrepreneurship effects of high-speed railways are stronger in these cities that are far from core cities. This study suggests that transportation infrastructure plays an important role in entrepreneurship, and there is a complementary effect between highways and high-speed railways.

Date: 2023
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DOI: 10.1080/1331677X.2022.2106505

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