The Impact of High-Speed Railway on Firm Entry in China
Firm entry has been an important engine for economic growth in China. The expansion of high-speed railway (HSR) system holds the promise of helping firm entry by reducing the transportation cost and facilitating the flows of human capital and knowledge. In this thesis, I conduct an empirical analysis to quantify the impact of HSR expansion on firm entry in China. The data consists of detailed firm registration data at the county level from 2011 to 2015 and HSR coverage information during the same period. I use the difference-in-differences approach to estimate the impact of HSR expansion on firm entry. I find that the opening of an HSR station in a county increases firm entry in that county by 5.72\% on average and that the impact is larger for high-tech industries. The analysis suggest that the improvement in transportation infrastructure such as the HSR expansion could promote entrepreneurship and further economic growth in China.
Donaghy, Kieran Patrick
Applied Economics and Management
M.S., Applied Economics and Management
Master of Science
dissertation or thesis