The Influence of Inter-city Metro System on Regional Integration: Empirical Analysis of Residential Property Transactions in Foshan, China

Inter-city public transit system, like high-speed rail and inter-city railway, continues to promote the development of regional economic integration, however, relatively little is known about the impacts of inter-city metro system on regional integration. Different from western countries, in China, the primary commuting mode is traditionally public transit within urban although there is higher reliance on automobile for commuting in past years. Therefore, citizens’ commute behavior and residential location choice is mainly influenced by traditional public transit system, especially urban mass rail transit. The construction and operation of Guangfo Metro, the first urban metro system that directly connects two cities- Guangzhou and Foshan in China, stimulates the immigration of residents and movement of enterprises from Guangzhou to Foshan during past decade, because of more affordable housing price and improved accessibility in Foshan. At present, Foshan acts as satellite city of Guangzhou economically and socially at a large extend, particularly after the operation of Guangfo metro. Therefore, Guangfo Metro system is a special and good case for observing the influence of inter-city metro system on regional integration, especially its impacts among satellite city in the context of China. The paper investigates the territorial influences of inter-city metro system on residents’ willingness to pay on residential property in Foshan by conducting a panel data analysis on real estate project-based transaction price around existing and proposed Guangfo Metro stations. This study contributes to understand the inter-city metro investment and its impacts on regional integration in metropolitan area in the context of China.