Analysing firm-level impacts of high-speed railways on reducing business costs: evidence from China

Numerous studies have revealed that high-speed railways (HSRs) can efficiently reduce transportation costs for firms and therefore bring more business capacities to firms in regions with HSR services. This paper aims to adopt the difference-in-difference (DID) and PSM (propensity score matching) DID...

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Main Author: Nuo Jin
Format: Article
Language:English
Published: Taylor & Francis Group 2024-12-01
Series:Regional Studies, Regional Science
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/21681376.2024.2305946
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author Nuo Jin
author_facet Nuo Jin
author_sort Nuo Jin
collection DOAJ
description Numerous studies have revealed that high-speed railways (HSRs) can efficiently reduce transportation costs for firms and therefore bring more business capacities to firms in regions with HSR services. This paper aims to adopt the difference-in-difference (DID) and PSM (propensity score matching) DID methods to examine the HSR’s causal effects on business costs. The author finds that business costs are significantly reduced due to the operation of HSR lines. Besides, private firms and firms in the secondary and tertiary sectors would experience more reductions of business costs encouraged by the HSR than state-owned and agricultural firms. The placebo test and parallel trend test have proved the feasibility of this study. Finally, this paper provides policy suggestions that the construction of HSR lines needs to be encouraged in order to promote the higher efficiency of business operations for firms and more-balanced spatial business developments in China.
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spelling doaj-art-2d3c00ba8fec45c2b9f2bce773e3b92c2024-12-20T09:37:14ZengTaylor & Francis GroupRegional Studies, Regional Science2168-13762024-12-01111223710.1080/21681376.2024.2305946Analysing firm-level impacts of high-speed railways on reducing business costs: evidence from ChinaNuo Jin0Cardiff Business School, Cardiff University, Cardiff, UKNumerous studies have revealed that high-speed railways (HSRs) can efficiently reduce transportation costs for firms and therefore bring more business capacities to firms in regions with HSR services. This paper aims to adopt the difference-in-difference (DID) and PSM (propensity score matching) DID methods to examine the HSR’s causal effects on business costs. The author finds that business costs are significantly reduced due to the operation of HSR lines. Besides, private firms and firms in the secondary and tertiary sectors would experience more reductions of business costs encouraged by the HSR than state-owned and agricultural firms. The placebo test and parallel trend test have proved the feasibility of this study. Finally, this paper provides policy suggestions that the construction of HSR lines needs to be encouraged in order to promote the higher efficiency of business operations for firms and more-balanced spatial business developments in China.https://www.tandfonline.com/doi/10.1080/21681376.2024.2305946High-speed railwaysbusiness costsPSM-DIDChinaM21M20
spellingShingle Nuo Jin
Analysing firm-level impacts of high-speed railways on reducing business costs: evidence from China
Regional Studies, Regional Science
High-speed railways
business costs
PSM-DID
China
M21
M20
title Analysing firm-level impacts of high-speed railways on reducing business costs: evidence from China
title_full Analysing firm-level impacts of high-speed railways on reducing business costs: evidence from China
title_fullStr Analysing firm-level impacts of high-speed railways on reducing business costs: evidence from China
title_full_unstemmed Analysing firm-level impacts of high-speed railways on reducing business costs: evidence from China
title_short Analysing firm-level impacts of high-speed railways on reducing business costs: evidence from China
title_sort analysing firm level impacts of high speed railways on reducing business costs evidence from china
topic High-speed railways
business costs
PSM-DID
China
M21
M20
url https://www.tandfonline.com/doi/10.1080/21681376.2024.2305946
work_keys_str_mv AT nuojin analysingfirmlevelimpactsofhighspeedrailwaysonreducingbusinesscostsevidencefromchina