Abstract

ABSTRACT In a time varying difference-in-differences setting, we empirically test the impact of high-speed rail (HSR) connections on urban clusters in China. We construct an urban cluster centrality index to reflect changes in the economic positions of counties in clusters. The results show the following: (1) The HSR connection has a positive effect on urban cluster centrality, especially for counties with higher centrality. (2) The heterogeneity effect indicates that western counties centrality has greatly increased their urban cluster centrality compared to eastern areas. (3) Mechanism estimation indicates that the different result to western and eastern counties is due to the high skill labour transfer from eastern to western counties.

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