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High-speed rail, tourist mobility, and firm value

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  • Zhang, Anqi
  • Liu, Lihua
  • Liu, Guangqiang

Abstract

Infrastructure is critical to the development of the tourism industry. Although high-speed rail (HSR) is an important component of transportation infrastructure and may reshape tourism activities, little attention has been paid on the impact of HSR on tourism firms’ value. We use a natural quasi-experimental of Chinese cities connected to HSR and difference-in-differences (DID) estimation to show that: (1) HSR substantially increases tourism firms’ value. (2) We introduce dynamic DID and placebo test to further establish causality. (3) A plausible mechanism driving our finding is the tourist mobility with HSR. (4) Our findings are particularly pronounced for small firms and offer theoretical and practical implications to understand tourist mobility and tourism firm value.

Suggested Citation

  • Zhang, Anqi & Liu, Lihua & Liu, Guangqiang, 2020. "High-speed rail, tourist mobility, and firm value," Economic Modelling, Elsevier, vol. 90(C), pages 108-116.
    • Handle: RePEc:eee:ecmode:v:90:y:2020:i:c:p:108-116
    DOI: 10.1016/j.econmod.2020.05.004
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    9. Wei, Xiaokun & Ruan, Qingsong & Lv, Dayong & Wu, Youyi, 2022. "Transportation infrastructure and bond issuance credit spread: Evidence from the Chinese high-speed rail construction," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 30-47.

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