The Economic Impact of High-Speed Rail Development in the Pearl River Delta: A Case Study of Guangzhou-Shenzhen-Hong Kong Express Rail Link

The rapid expansion of high-speed rail (HSR) has become a crucial element of infrastructure, markedly improving regional connectivity and economic integration. This study centers on the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL), a pivotal project that connects major cities within the Pearl River Delta (PRD) and links Hong Kong to mainland China. The analysis demonstrates that while the XRL has stimulated economic growth by facilitating inter-regional exchanges, it has also presented challenges to local vulnerable sectors, particularly small and medium-sized enterprises (SMEs). These challenges stem from heightened competition due to industrial agglomeration. To mitigate these effects, the study proposes enhancing regional economic cooperation by establishing specialized economic zones and developing cross-border trade networks. These strategies aim to capitalize on the benefits of the XRL while enabling SMEs to access new markets and boost their competitiveness. The research underscores the importance of strategically leveraging infrastructure projects like the XRL to promote sustainable economic growth, offering a framework for addressing potential drawbacks.