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High‐speed railroads and economic geography: Evidence from Japan

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  • Zhigang Li
  • Hangtian Xu

Abstract

Our study shows that high‐speed railroads (HSR) can either polarize or diffuse economic geography based on the sector and distance between cities. Economic activities could agglomerate from distant to core areas, while disperse from core toward its periphery at the same time. Empirical evidence from the 1982 introduction of two major HSRs in Japan, which halved intercity transit time, support this. Noncore areas lost 3–6 percent population; service employment declined 7 percent, whereas manufacturing employment increased by 21 percent. Municipalities within approximately 150 km of Tokyo expanded, while the distant ones contracted. The net result is that the Tokyo metropolitan area agglomerates because of HSR.

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  • Zhigang Li & Hangtian Xu, 2018. "High‐speed railroads and economic geography: Evidence from Japan," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 705-727, September.
    • Handle: RePEc:bla:jregsc:v:58:y:2018:i:4:p:705-727
    DOI: 10.1111/jors.12384
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    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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