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Transportation Improvement and Firm Innovation: Evidence from China

In: Proceedings of the 2023 4th International Conference on Management Science and Engineering Management (ICMSEM 2023)

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  • Xiangcai Peng

    (Guangdong University of Finance and Economics, School of Business Administration)

Abstract

Transportation infrastructure improved with the construction of high-speed rail (HSR) has an increasingly significant role in promoting economic growth in China, so it is urgent to describe and measure its economic benefits. By matching the database of China’s urban data, HSR data, and China’s listed firms’ data in the period of 2003–2016, we applied the time-varying difference in difference (DID) method to quantitatively explore the relationship between transportation improvement and firms’ innovation. As revealed by the results, we found that transportation improvement has a significantly positive economic effect on firm innovation. Therefore, both firms and policymakers should not ignore the role of infrastructure in firm innovation.

Suggested Citation

  • Xiangcai Peng, 2024. "Transportation Improvement and Firm Innovation: Evidence from China," Advances in Economics, Business and Management Research, in: Suhaiza Hanim Binti Dato Mohamad Zailani & Kosga Yagapparaj & Norhayati Zakuan (ed.), Proceedings of the 2023 4th International Conference on Management Science and Engineering Management (ICMSEM 2023), pages 174-180, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-256-9_18
    DOI: 10.2991/978-94-6463-256-9_18
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