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“Trains of Thought: High-Speed Rail and Innovation in China”

Author

Listed:
  • Georgios Tsiachtsiras

    (AQR-IREA University of Barcelona and University of Bath)

  • Deyun Yin

    (School of Economics and Management, Harbin Institute of Technology)

  • Ernest Miguelez

    (Univ. Bordeaux and AQR-IREA University of Barcelona)

  • Rosina Moreno

    (AQR-IREA University of Barcelona)

Abstract

This paper explores the effect of the High Speed Rail (HSR) network expansion on local innovation in China during the period 2008-2016. Using exogenous variation arising from a novel instrument - courier’s stations during the Ming dynasty, we find solid evidence that the opening of a HSR station increases cities’ innovation activity. We also explore the role of inter-city technology diffusion as being behind the surge of local innovation. To do it, we compute least-cost paths between city-pairs, over time, based on the opening and speed of each HSR line, and obtain that an increase in a city’s connectivity to other cities specialized in a specific technological field, through the HSR network, increases the probability for the city to specialize in that same technological field. We interpret it as evidence of knowledge diffusion.

Suggested Citation

  • Georgios Tsiachtsiras & Deyun Yin & Ernest Miguelez & Rosina Moreno, 2022. "“Trains of Thought: High-Speed Rail and Innovation in China”," AQR Working Papers 202210, University of Barcelona, Regional Quantitative Analysis Group, revised Nov 2022.
    • Handle: RePEc:aqr:wpaper:202210
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    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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