High-Speed Rail and the Spatial Pattern of New Firm Births : Evidence from China

This study examines the impact of China's high-speed rail (HSR) on the spatial pattern of new firm births. Difference-in-differences regressions show that both agglomeration economies and HSR access influence the spatial pattern of new firm births. New firm births decline significantly in counties with HSR access. We find more service sector firms in urban districts due to HSR while primary and manufacturing firms relocate to areas without HSR access. Geographically, the Central China is the most attractive to firms, while other regions are fell behind. Firm movement patterns, therefore, can indicate how HSR reshapes the spatial distribution of economic activities