Exploring the impacts of high-speed rail on technology-intensive manufacturing: the case of the Yangtze River Delta region, 2007–2016

Abstract

Abstract High-speed rail (HSR) may influence economic activities that rely heavily on innovation by facilitating skilled labour, face-to-face interactions, and knowledge spillovers. This study explores how HSR development affects the spatial distribution of technology-intensive manufacturing (TIM) in the Yangtze River Delta (YRD), China. Using a panel dataset including 24 cities for the period 2007–2016 and employing the output of communications equipment, computers, and other electronic equipment (CCOE) as a proxy for TIM’s economic productivity at the city level, we apply the staggered difference-in-differences (DID) and spatial Durbin model (SDM) to measure the impacts of HSR’s initial opening and connectivity on CCOE development and capture the spatial spillover effects of HSR connectivity. Our findings indicate that the initial opening of HSR and HSR connectivity are negatively associated with CCOE productivity in both DID and SDM. Additionally, the reduction of CCOE is more pronounced in cities with larger populations and higher levels of economy. Moreover, HSR has a more significant effect on CCOE than other manufacturing sectors. However, the spillover effects remain insignificant, indicating HSR’s limited impact on CCOE development in adjacent cities within the YRD.

Keywords

• High-speed rail
• Technology-intensive manufacturing
• Yangtze River Delta
• Staggered difference-in-difference
• Spatial Durbin model