EconPapers    
Economics at your fingertips  
 

High-speed rail and inventory reduction: Firm-level evidence from China

Leona Shao-Zhi Li () and Chuantao Cui
Additional contact information
Leona Shao-Zhi Li: Faculty of Business Administration, University of Macau

No 2018-08, RIEI Working Papers from Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration

Abstract: Using a balanced panel of manufacturing firms from China between 2007 and 2013, we estimate that being connected to a high-speed rail system leads to 9.5% reduction in local firms' input inventory spending. The e ect is stronger for downstream industries and private enterprises. A back-of-envelope calculation suggests that each dollar of HSR investment reduces input inventory stock by 12 cents, which is significantly larger than the e ects found in previous studies based on highway or road investment. Declines in transportation and communication cost, as well as agglomeration e ect are identified as plausible mechanisms. Our findings reveal a micro channel through which improved transport infrastructure brings about economic gains, and contribute to the cost-benefit assessment of high-speed rail investment.

Keywords: Transport infrastructure; high-speed rail; firm performance; inventory; China (search for similar items in EconPapers)
JEL-codes: D21 H54 O18 R4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-reg, nep-tra, nep-tre and nep-ure
Date: 2018-10-04
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://58.210.89.21/RePEc/xjt/working-papers/RIEI-WP_2018-08.pdf First version, 2018 (application/pdf)

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: https://EconPapers.repec.org/RePEc:xjt:rieiwp:2018-08

Access Statistics for this paper

More papers in RIEI Working Papers from Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration Contact information at EDIRC.
Bibliographic data for series maintained by Paulo Regis ().

 
Page updated 2019-04-18
Handle: RePEc:xjt:rieiwp:2018-08