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The impact of rail dispatch system reform on import by rail --- Empirical evidence from a natural experiment in China

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  • Yuan, Hang
  • Wang, Kun
  • Yang, Hangjun
  • Wang, Cong

Abstract

China centralized the rail dispatch office from branch bureaus to rail bureaus in 2005. This provides a rare natural experiment to investigate how the rail dispatch office operational efficiency can affect import by rail. Using China's rail operational data and import trade data for the 2004–2006 period, we employed the difference-in-differences (DID) regressions to evaluate the reform's effect on import by rail. Specifically, we found that centralizing the rail dispatch office has downgraded the dispatch operational efficiency. This is mainly because of the significant cut of dispatch resources, which caused job overload and stress for the remaining dispatcher. As a result, the import by rail has been significantly reduced, measured in terms of both “intensive” and “extensive” margins at both firm and product levels. In addition, it is found that the private and foreign-owned firms were more negatively affected. We have also offered several policy implications when discussing the estimation results.

Suggested Citation

  • Yuan, Hang & Wang, Kun & Yang, Hangjun & Wang, Cong, 2019. "The impact of rail dispatch system reform on import by rail --- Empirical evidence from a natural experiment in China," Transport Policy, Elsevier, vol. 79(C), pages 165-176.
    • Handle: RePEc:eee:trapol:v:79:y:2019:i:c:p:165-176
    DOI: 10.1016/j.tranpol.2019.05.005
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    Cited by:

    1. Yuan, Hang & Wang, Kun & Yang, Hangjun, 2022. "Rail's efficiency gain by separating affiliated businesses and its impact on product mix of export by rail," Transport Policy, Elsevier, vol. 115(C), pages 126-140.
    2. Mohsen Momenitabar & Zhila Dehdari Ebrahimi & Mohammad Arani, 2020. "A Systematic and Analytical Review of the Socioeconomic and Environmental Impact of the Deployed High-Speed Rail (HSR) Systems on the World," Papers 2003.04452, arXiv.org, revised Mar 2020.
    3. Mohsen Momenitabar & Raj Bridgelall & Zhila Dehdari Ebrahimi & Mohammad Arani, 2021. "Literature Review of Socioeconomic and Environmental Impacts of High-Speed Rail in the World," Sustainability, MDPI, vol. 13(21), pages 1-27, November.
    4. Gong, Daqing & Ren, Long & Liu, Shifeng & Yan, Xiaojie, 2022. "Compensation and coordination mechanisms on China's railway public transportation service," Transport Policy, Elsevier, vol. 115(C), pages 101-112.

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