A Study on the Industrial Relationship and Economic Ripple Effects of China's Railway Transport Industry

Abstract

Purpose: As an important part of the Chinese comprehensive transportation system, railway transportation has a pillar role in the national economy. On the one hand, it transports raw materials, fuels and other intermediate products for all industrial sectors of the national economy. On the other hand, it has played a positive role in the exchange of talents and technologies between various industries. It has a considerable driving and pulling effect on various industries of the national economy. Research design, data, and methodology: Through literature research, empirical research and other research methods, the relationship between the railway transportation industry and other industries across the country is expounded. Results: First of all, a series of indicators of industrial correlation are calculated, and it is concluded that the railway transport industry belongs to the intermediate input basic industry; then, through the investigation of the value composition of the railway transport industry, it is concluded that the railway transport industry has high labor costs and belongs to capital-intensive industries; then, the economic ripple effect of the railway transport industry is analyzed. It is concluded that the differential operation of the separation of passengers and goods should be carried out according to the characteristics of railway passenger and freight transportation. Finally, based on the regression analysis of the relationship between China''s railway passenger and freight volume and GDP from 2001 to 2017, it is concluded that the railway transport industry plays a promoting role in the national economy. Conclusions: Through the calculation results, it can be seen that China''s railway transportation industry plays an important role in promoting national economic growth and inter-industry integration, and in order to ensure sustained economic stability, China should continue to consolidate the basic industrial position of railway transportation industry and better promote economic development.