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This research aims to investigate the impact of high-speed rail openings on regional factor allocation in China.

March 14, 2026SustainabilityOpen Access

High-Speed Rail and Sustainable Regional Development: Evidence from Factor Allocation in China

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Demonstrates how high-speed rail improves labor and capital allocation in China, suggesting implications for sustainable development.

This research aims to investigate the impact of high-speed rail openings on regional factor allocation in China.
Extended a general-equilibrium model within a spatial-economics framework
Analyzed panel data from prefecture-level cities in China from 2006 to 2016
Used a difference-in-differences design to estimate causal effects
Conducted heterogeneity analyses to examine regional disparities
High-speed rail openings significantly improved labor and capital allocation
Effects were concentrated in eastern cities, with no significant impact in central and western regions
Improved allocation occurred in both provincial capital and non-capital cities
Findings remained robust after various endogeneity checks and alternative specifications

Song et al. (2026) studied this question.

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