We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Expanding Footprints: The Impact of Passenger Transportation on Corporate Locations.
- Authors
Lin, Yatang; Qin, Yu; Sulaeman, Johan; Yan, Jubo; Zhang, Jialiang
- Abstract
This article investigates how transportation networks shape firms' geographic footprint by reducing monitoring costs of distant investments. Exploiting the staggered expansions of China's passenger high-speed rail (HSR) network, we document that the amount of intercity investment between a pair of cities increases by 45% with the introduction of an HSR line connecting the cities. We enhance the causal inference by applying high-dimensional fixed effects, and focusing on city pairs that are "accidentally" connected in the network. The HSR effect is the strongest in industries that require on-site monitoring, as well as for controlling stakes in large distant investments.
- Subjects
CHINA; PASSENGER traffic; CITIES &; towns; HIGH speed trains; CAUSAL inference
- Publication
Review of Finance, 2023, Vol 27, Issue 3, p1119
- ISSN
1572-3097
- Publication type
Article
- DOI
10.1093/rof/rfac049