The Heterogeneous Effects of High‐Speed Rail on Urban Economy in China: From the Perspective of Labor Mobility

ABSTRACT Over the last decade, China's High‐Speed Rail (HSR) network has expanded rapidly, raising important questions about its economic implications. The purpose of this study is to explore the impact of HSR on urban economic growth, with a particular focus on labor mobility as a transmission channel. In terms of research methods, to better capture HSR connectivity, a network‐based measure of degree centrality is introduced, which provides a more accurate representation of intercity linkages. Based on this measure, an econometric model is employed to conduct empirical analysis. The results indicate that HSR significantly boosts cross‐regional labor inflow in the tertiary industry, driving urban economic development, while its effects on labor in the primary and secondary industries are negative or insignificant. The impact differs by city type: in developed cities, HSR primarily promotes the tertiary industry through labor inflows, whereas in developing cities, it attracts labor to both the secondary and tertiary industries. These findings contribute to the understanding of how transportation infrastructure shapes urban economies, revealing heterogeneous mechanisms across industries and cities.

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Journal
Review of Development Economics
Published
2026-03-08
DOI
https://doi.org/10.1111/rode.70148
Primary Topic
Aviation Industry Analysis and Trends
Type
article
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article

The Heterogeneous Effects of High‐Speed Rail on Urban Economy in China: From the Perspective of Labor Mobility

Junqiushi Ren, Yinsu Wang, Luping Zhang, Xinyu Wang
Review of Development Economics
Aviation Industry Analysis and Trends
article

The Heterogeneous Effects of High‐Speed Rail on Urban Economy in China: From the Perspective of Labor Mobility

Junqiushi Ren, Yinsu Wang, Luping Zhang, Xinyu Wang
article en

Abstract

ABSTRACT Over the last decade, China's High‐Speed Rail (HSR) network has expanded rapidly, raising important questions about its economic implications. The purpose of this study is to explore the impact of HSR on urban economic growth, with a particular focus on labor mobility as a transmission channel. In terms of research methods, to better capture HSR connectivity, a network‐based measure of degree centrality is introduced, which provides a more accurate representation of intercity linkages. Based on this measure, an econometric model is employed to conduct empirical analysis. The results indicate that HSR significantly boosts cross‐regional labor inflow in the tertiary industry, driving urban economic development, while its effects on labor in the primary and secondary industries are negative or insignificant. The impact differs by city type: in developed cities, HSR primarily promotes the tertiary industry through labor inflows, whereas in developing cities, it attracts labor to both the secondary and tertiary industries. These findings contribute to the understanding of how transportation infrastructure shapes urban economies, revealing heterogeneous mechanisms across industries and cities.

Review of Development Economics
Southwestern University of Finance and Economics (CN)
Openalex Percentile: Top 36%
Aviation Industry Analysis and Trends
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The Heterogeneous Effects of High‐Speed Rail on Urban Economy in China: From the Perspective of Labor Mobility — Junqiushi Ren, Yinsu Wang, et al. · Review of Development Economics (2026) | TGRS Research Map | TGRS