Are the poor getting poorer by connecting to the core? Exploring the impact of high-speed rail on the growth of small and medium-sized cities

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ABSTRACT We use China’s HSR development as a ‘quasi-natural experiment’ to show that the economic growth of small and medium-sized cities accelerates when connected to major metropolises. Current studies mainly focus on exploring the generative effects of HSR on urban spatial development; the effects of the HSR on small/medium-sized cities’ growth remain unexplored, especially from the perspective of interconnection with the central cities. By strengthening the links between cities, HSR promotes a positive spillover effect reflected in the industrial transfer and labor mobility from central cities to small and medium-sized cities. In addition, the threshold effect analysis suggests that the spillover effect is significant when the small and medium-sized cities are allocated within 300 km radius of the core city.