Transportation infrastructure and capital mobility: evidence from China’s high-speed railways
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168_2021_1059_ReferencePDF.pdf
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Author(s)
Duan, Liaoliao
Niu, Dongxiao
Sun, Weizeng
Zheng, Siqi
Date Issued
April 11, 2021
Publisher
Springer Berlin Heidelberg
Citation
Duan, Liaoliao, Niu, Dongxiao, Sun, Weizeng and Zheng, Siqi. 2021. "Transportation infrastructure and capital mobility: evidence from China’s high-speed railways."
Version
Author's final manuscript
Abstract
Abstract
Using the data on venture capital investment in China and high-speed railway (HSR) construction as a natural experiment, this study presents empirical evidence about the impact of transportation infrastructure on capital mobility. The study finds that one new HSR train serving a city increases venture capital inflow to and outflow from that city by 1.0% and 1.6%, respectively. The heterogeneous analyses indicate that small cities, high-tech industries, and younger firms are significantly affected by HSR connections, which show that the accelerated information transmission and investors’ incremental growth expectations may account for the observed effect.
MIT Department
Massachusetts Institute of Technology. Media Laboratory
Massachusetts Institute of Technology. Center for Real Estate
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Creative Commons Attribution-Noncommercial-Share Alike
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DOI of Published Version
https://doi.org/10.1007/s00168-021-01059-w
