Abstract
Transportation network plays a critical role in reshaping the spatial geographical economy in terms of population, urban form, output and so on. But the impact of transportation on capital mobility is seldom revealed. Using venture capital investment events and airline network as well as high-speed rail network in China, this paper examines the effects of transportation network on capital mobility. We find that 1% decline in travel time will lead to increase in VC investment deals by 0.02. Heterogeneous results indicate that small firms, young firms, and emerging industries benefit more from the transportation network, which demonstrates the role of transportation network in alleviating information asymmetries. In addition, heterogeneity on VC flow direction offers suggestive evidence that transportation network is likely to alleviate development imbalance within wealthier cities while widening the gap between wealthier cities and poorer cities.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
