IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v164y2022icp82-97.html
   My bibliography  Save this article

The impact of high-speed railway on labor spatial misallocation—Based on spatial difference-in-differences analysis

Author

Listed:
  • Yan, Linnan
  • Tu, Menger
  • Chagas, André L.S.
  • Tai, Lufeng

Abstract

Existing studies neglected to assess the resource allocation effect of high-speed railway (HSR). This paper examines the impact of HSR on labor spatial misallocation in China by applying a modified spatial difference-in-differences approach, which identify local treatment effect, spillover effect on treated and untreated regions. The study finds: (1) Opening HSR alleviates not only the local labor misallocation but also the misallocation in surrounding areas to a greater extent, including cities with HSR (treatment group) and without HSR (control group), which contributes to the overall productivity increase. The spillover effect of HSR is larger than the direct effect. (2) The largest spillover effect occurs in adjacent areas near 350 km apart, while the spillover effect disappears beyond 500 km. (3) The direction and magnitude of HSR effect depend on the urban scale. For large-scale cities, the impact of opening HSR is greater versus small-scale ones.

Suggested Citation

  • Yan, Linnan & Tu, Menger & Chagas, André L.S. & Tai, Lufeng, 2022. "The impact of high-speed railway on labor spatial misallocation—Based on spatial difference-in-differences analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 164(C), pages 82-97.
    • Handle: RePEc:eee:transa:v:164:y:2022:i:c:p:82-97
    DOI: 10.1016/j.tra.2022.07.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096585642200194X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2022.07.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bartelsman, Eric & Dobbelaere, Sabien & Peters, Bettina, 2013. "Allocation of Human Capital and Innovation at the Frontier: Firm-Level Evidence on Germany and the Netherlands," IZA Discussion Papers 7540, Institute of Labor Economics (IZA).
    2. Delgado, Michael S. & Florax, Raymond J.G.M., 2015. "Difference-in-differences techniques for spatial data: Local autocorrelation and spatial interaction," Economics Letters, Elsevier, vol. 137(C), pages 123-126.
    3. Vickerman, Roger, 2015. "High-speed rail and regional development: the case of intermediate stations," Journal of Transport Geography, Elsevier, vol. 42(C), pages 157-165.
    4. Remi Jedwab & Alexander Moradi, 2016. "The Permanent Effects of Transportation Revolutions in Poor Countries: Evidence from Africa," The Review of Economics and Statistics, MIT Press, vol. 98(2), pages 268-284, May.
    5. Kim, Hyojin & Sultana, Selima, 2015. "The impacts of high-speed rail extensions on accessibility and spatial equity changes in South Korea from 2004 to 2018," Journal of Transport Geography, Elsevier, vol. 45(C), pages 48-61.
    6. Orley Ashenfelter, 1978. "Union Relative Wage Effects: New Evidence and a Survey of their Implications for Wage Inflation," International Economic Association Series, in: Richard Stone & William Peterson (ed.), Econometric Contributions to Public Policy, chapter 2, pages 31-63, Palgrave Macmillan.
    7. Benjamin Faber, 2014. "Trade Integration, Market Size, and Industrialization: Evidence from China's National Trunk Highway System," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(3), pages 1046-1070.
    8. Komei Sasaki & Tadahiro Ohashi & Asao Ando, 1997. "High-speed rail transit impact on regional systems: does the Shinkansen contribute to dispersion?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 31(1), pages 77-98.
    9. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
    10. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    11. Chang-Tai Hsieh & Enrico Moretti, 2019. "Housing Constraints and Spatial Misallocation," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(2), pages 1-39, April.
    12. Piet Rietveld & Frank Bruinsma, 1998. "The Accessibility of Cities in European Infrastructure Networks," Advances in Spatial Science, in: Is Transport Infrastructure Effective?, chapter 5, pages 115-139, Springer.
    13. Li, Jie & Qiu, Larry D. & Sun, Qunyan, 2003. "Interregional protection: Implications of fiscal decentralization and trade liberalization," China Economic Review, Elsevier, vol. 14(3), pages 227-245.
    14. Feng Yu & Faqin Lin & Yihong Tang & Changbiao Zhong, 2019. "High‐speed railway to success? The effects of high‐speed rail connection on regional economic development in China," Journal of Regional Science, Wiley Blackwell, vol. 59(4), pages 723-742, September.
    15. Roberto Ramos & Manuel García-Santana & Jose Asturias, 2014. "Misallocation, Internal Trade, and the Role of Transportation Infrastructure," 2014 Meeting Papers 1035, Society for Economic Dynamics.
    16. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    17. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    18. Andrew B. Bernard & Andreas Moxnes & Yukiko U. Saito, 2019. "Production Networks, Geography, and Firm Performance," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 639-688.
    19. Yu Qin, 2017. "‘No county left behind?’ The distributional impact of high-speed rail upgrades in China," Journal of Economic Geography, Oxford University Press, vol. 17(3), pages 489-520.
    20. Loren Brandt & Trevor Tombe & Xiadong Zhu, 2013. "Factor Market Distortions Across Time, Space, and Sectors in China," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 39-58, January.
    21. Nathaniel Baum-Snow & Loren Brandt & J. Vernon Henderson & Matthew A. Turner & Qinghua Zhang, 2017. "Roads, Railroads, and Decentralization of Chinese Cities," The Review of Economics and Statistics, MIT Press, vol. 99(3), pages 435-448, July.
    22. Xiaofang Dong & Siqi Zheng & Matthew E. Kahn, 2018. "The Role of Transportation Speed in Facilitating High Skilled Teamwork," NBER Working Papers 24539, National Bureau of Economic Research, Inc.
    23. Loren Brandt & Trevor Tombe & Xiadong Zhu, 2013. "Factor Market Distortions Across Time, Space, and Sectors in China," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 39-58, January.
    24. Aoki, Shuhei, 2012. "A simple accounting framework for the effect of resource misallocation on aggregate productivity," Journal of the Japanese and International Economies, Elsevier, vol. 26(4), pages 473-494.
    25. Fu, Shihe & Gu, Yizhen, 2017. "Highway toll and air pollution: Evidence from Chinese cities," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 32-49.
    26. Zhou, Zhengyi & Zhang, Anming, 2021. "High-speed rail and industrial developments: Evidence from house prices and city-level GDP in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 98-113.
    27. Chen, Zhenhua & Xue, Junbo & Rose, Adam Z. & Haynes, Kingsley E., 2016. "The impact of high-speed rail investment on economic and environmental change in China: A dynamic CGE analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 232-245.
    28. Heuermann, Daniel F. & Schmieder, Johannes F., 2014. "Warping Space: High-Speed Rail and Returns to Scale in Local Labor Markets," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100293, Verein für Socialpolitik / German Economic Association.
    29. Chagas, André L.S. & Azzoni, Carlos R. & Almeida, Alexandre N., 2016. "A spatial difference-in-differences analysis of the impact of sugarcane production on respiratory diseases," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 24-36.
    30. Benjamin Moll, 2014. "Productivity Losses from Financial Frictions: Can Self-Financing Undo Capital Misallocation?," American Economic Review, American Economic Association, vol. 104(10), pages 3186-3221, October.
    31. Wang, Yao & Dong, Weijia, 2022. "How China's high-speed rail promote local economy: New evidence from county-level panel data," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 67-81.
    32. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    33. Abhijit V. Banerjee & Benjamin Moll, 2010. "Why Does Misallocation Persist?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 189-206, January.
    34. Solmaria Halleck Vega & J. Paul Elhorst, 2015. "The Slx Model," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 339-363, June.
    35. Kyle Butts, 2021. "Difference-in-Differences Estimation with Spatial Spillovers," Papers 2105.03737, arXiv.org, revised Jun 2023.
    36. Liang, Yutian & Zhou, Keyang & Li, Xun & Zhou, Zhengke & Sun, Wei & Zeng, Jiaqi, 2020. "Effectiveness of high-speed railway on regional economic growth for less developed areas," Journal of Transport Geography, Elsevier, vol. 82(C).
    37. Moshe Givoni, 2006. "Development and Impact of the Modern High‐speed Train: A Review," Transport Reviews, Taylor & Francis Journals, vol. 26(5), pages 593-611, January.
    38. Hodgson, Charles, 2018. "The effect of transport infrastructure on the location of economic activity: Railroads and post offices in the American West," Journal of Urban Economics, Elsevier, vol. 104(C), pages 59-76.
    39. Li, Pei & Lu, Yi & Wang, Jin, 2016. "Does flattening government improve economic performance? Evidence from China," Journal of Development Economics, Elsevier, vol. 123(C), pages 18-37.
    40. Zabel, Jeffrey E., 2012. "Migration, housing market, and labor market responses to employment shocks," Journal of Urban Economics, Elsevier, vol. 72(2), pages 267-284.
    41. Ejaz Ghani & Arti Grover Goswami & William R. Kerr, 2016. "Highway to Success: The Impact of the Golden Quadrilateral Project for the Location and Performance of Indian Manufacturing," Economic Journal, Royal Economic Society, vol. 126(591), pages 317-357, March.
    42. Lin, Yatang, 2017. "Travel costs and urban specialization patterns: Evidence from China’s high speed railway system," Journal of Urban Economics, Elsevier, vol. 98(C), pages 98-123.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen Yang & Quanliang Chen & Jing Yang, 2022. "Factors Affecting Travel Mode Choice between High-Speed Railway and Road Passenger Transport—Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-17, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Linnan Yan & Menger Tu & Andre Luis Squarize Chagas & Lufeng Tai, 2022. "The Impact of High-Speed Rail on Labor Spatial Misallocation– Based on Spatial Difference-in-Differences Analysis," Working Papers, Department of Economics 2022_19, University of São Paulo (FEA-USP).
    2. Liu, Mengsha & Jiang, Yan & Wei, Xiaokun & Ruan, Qingsong & Lv, Dayong, 2023. "Effect of high-speed rail on entrepreneurial activities: Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    3. Laiqun Jin & Xiuyan Liu & Sam Hak Kan Tang, 2021. "High-Technology Zones, Misallocation of Resources among Cities and Aggregate Productivity: Evidence from China," Economics Discussion / Working Papers 21-11, The University of Western Australia, Department of Economics.
    4. Li, Xiaolong & Wu, Zongfa & Zhao, Xingchen, 2020. "Economic effect and its disparity of high speed rail in China: A study of mechanism based on synthesis control method," Transport Policy, Elsevier, vol. 99(C), pages 262-274.
    5. Okamoto, Chigusa & Sato, Yasuhiro, 2021. "Impacts of high-speed rail construction on land prices in urban agglomerations: Evidence from Kyushu in Japan," Journal of Asian Economics, Elsevier, vol. 76(C).
    6. Laiqun Jin & Changwei Mo & Bochao Zhang & Bing Yu, 2018. "What Is the Focus of Structural Reform in China?—Comparison of the Factor Misallocation Degree within the Manufacturing Industry with a Unified Model," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    7. Ma, Liya & Niu, Dongxiao & Sun, Weizeng, 2021. "Transportation infrastructure and entrepreneurship: Evidence from high-speed railway in China," China Economic Review, Elsevier, vol. 65(C).
    8. Xinyuan Wang & Daisheng Tang & Yahong Liu & Tao Bu, 2023. "The impact of high-speed railway on labor market between the North and South: evidence from China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 71(2), pages 487-515, October.
    9. Chang, Zheng & Zheng, Longfei, 2022. "High-speed rail and the spatial pattern of new firm births: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 373-386.
    10. Liaoliao Duan & Dongxiao Niu & Weizeng Sun & Siqi Zheng, 2021. "Transportation infrastructure and capital mobility: evidence from China’s high-speed railways," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 617-648, December.
    11. Zhang, Xueliang & Hu, Yuqi & Lin, Yongran, 2020. "The influence of highway on local economy: Evidence from China's Yangtze River Delta region," Journal of Transport Geography, Elsevier, vol. 82(C).
    12. Jin, Laiqun & Dai, Jiaying & Jiang, Weijie & Cao, Kairui, 2023. "Digital finance and misallocation of resources among firms: Evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
    13. Pablo D. Fajgelbaum & Edouard Schaal, 2020. "Optimal Transport Networks in Spatial Equilibrium," Econometrica, Econometric Society, vol. 88(4), pages 1411-1452, July.
    14. Jin, Mengjie & Lin, Kun-Chin & Shi, Wenming & Lee, Paul T.W. & Li, Kevin X., 2020. "Impacts of high-speed railways on economic growth and disparity in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 158-171.
    15. Bo, Shiyu, 2020. "Centralization and regional development: Evidence from a political hierarchy reform to create cities in china," Journal of Urban Economics, Elsevier, vol. 115(C).
    16. Yanyan Gao & Yongqing Nan & Shunfeng Song, 2022. "High‐speed rail and city tourism: Evidence from Tencent migration big data on two Chinese golden weeks," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1012-1036, September.
    17. Gao, Yanyan & Zheng, Jianghuai, 2020. "The impact of high-speed rail on innovation: An empirical test of the companion innovation hypothesis of transportation improvement with China’s manufacturing firms," World Development, Elsevier, vol. 127(C).
    18. Jingbo Cui & Tianqi Li & Zhenxuan Wang, 2023. "Research collaboration beyond the boundary: Evidence from university patents in China," Journal of Regional Science, Wiley Blackwell, vol. 63(3), pages 674-702, June.
    19. Xi, Qiangmin & Mei, Lin, 2022. "How did development zones affect China’s land transfers? The scale, marketization, and resource allocation effect," Land Use Policy, Elsevier, vol. 119(C).
    20. Xinze Li & Luojia Wang & Kerui Du, 2023. "How do environmental regulations influence resource misallocation in China? The role of investment flows," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 538-550, January.

    More about this item

    Keywords

    High-speed railway; Spatial difference-in-differences; Labor spatial misallocation;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:164:y:2022:i:c:p:82-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.