Significant disparities among regions characterize economic development in China. While some cities have experienced rapid growth and improved living standards, others lag. This paper investigates whether the expansion of High-Speed Rail (HSR) and increased connectivity with wealthier regions have facilitated catch-up growth, particularly in disadvantaged areas by geography. To assess the causal impact, we exploit the staggered opening of HSR stations and employ stacked Differences-in-Differences as our identification strategy. Recognizing that the expansion of HSR stations is not random, we use propensity score matching (PSM) to identify similar control regions. We categorize Chinese counties into three samples for PSM: the full sample, less developed counties, and counties with challenging terrain. Our findings suggest that an HSR station significantly boosts economic activity, as measured by nighttime lights (NL), even in regions with difficult terrain. We also use urban cover, derived from satellite imagery, as a proxy for urban development. Our results indicate that HSR openings lead to a significant increase in urban expansion in less developed regions but do not significantly impact urbanization in regions with challenging terrain.

Auston Jiaqiang Yang, Carson Jiasheng Yang. The Impacts of High-Speed Railways on Cities with Difficult Terrains in China. Academic Journal of Business & Management (2024) Vol. 6, Issue 9: 61-68. https://doi.org/10.25236/AJBM.2024.060909.

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