The local effects and neighborhood effects of high-speed railway on urban entrepreneurial vitality: Evidence from China

Abstract

Using the spatial difference-in-differences (SDID) model, This paper quantitatively investigates the local effects and neighborhood effects of High-speed railway (HSR) on urban entrepreneurial vitality based on the balanced panel data of China's 277 prefecture-level cities between 2003 and 2019 with HSR opening as a quasi-natural experiment. The findings indicate that: (1) HSR not only enhances entrepreneurial activity in local cities but also boosts entrepreneurial activity in neighboring cities. This conclusion is supported by a series of robustness tests. (2) The neighborhood effects of HSR on urban entrepreneurial activity have a boundary of 600 km, meaning that the spatial spillover effect of HSR dissipates at a distance of 600 km. (3) The local effects and neighborhood effects of HSR on entrepreneurial vitality are more pronounced in core cities, cities with higher levels of innovation, cities with superior traditional transportation infrastructure conditions, and cities with a wider variety of cultural backgrounds. (4) HSR can effectively promote urban entrepreneurial vitality by accelerating talent mobility and alleviating financial constraints. The above conclusions can be extremely beneficial in assisting China and other emerging countries develop concrete proposals for HSR construction that will boost urban entrepreneurial vitality.