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Chinese Journal of Management Science ›› 2025, Vol. 33 ›› Issue (8): 90-99.doi: 10.16381/j.cnki.issn1003-207x.2023.1381

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Mega Railway Projects and Regional Economic, Social and Cultural Development: A DID Test Based on Qinghai-Tibet Railway

Huiyu Zhou1, Ruimin Li2, Meng Xu3()   

  1. 1.School of Economics and Management,Beijing Jiaotong University,Beijing 100044,China
    2.Faculty of Applied Economics,University of Chinese Academy of Social Sciences,Beijing 102488,China
    3.School of Systems Science,Beijing Jiaotong University,Beijing 100044,China
  • Received:2023-08-18 Revised:2024-07-06 Online:2025-08-25 Published:2025-09-10
  • Contact: Meng Xu E-mail:mengxu@bjtu.edu.cn

Abstract:

Mega-railway projects hold a crucial position in developing and constructing a strong transportation network in China. Existing methods to quantitatively analyze and evaluate externalities of these mega-railway project are currently inadequate, and quantitative based studies on the externalities of mega-railway projects has important theoretical and practical implications for the sustainable development. Three key questions, i.e. what is the impact of the opening of Qinghai-Tibet Railway on the regional economy, society and culture development? What is the mechanism of the Qinghai-Tibet Railway effect? And is there heterogeneity in the impact of the Qinghai-Tibet Railway on different regions? To answer these questions, a difference-in-differences (DID) model is proposed basing on the quasi-natural experiment of the opening of the Qinghai-Tibet Railway. Using panel data from the Qinghai-Tibet region from 2003 to 2020, the effect and mechanism of the opening of Qinghai-Tibet Railway on the economic, social, and cultural development of the regions along the route are explored. Parallel trend test, random selection of treatment groups and instrumental variable method are used to verify the reliability of the research conclusions. The DID method can overcome biases in modelling estimation caused by variable endogeneity and omitted variables, making it an effective method for evaluating the externality on the opening of the Qinghai-Tibet Railway. Results show that the opening of the Qinghai-Tibet Railway generally increases the GDP per capita of the regions along the railway, reduces the income gap between urban and rural residents, and significantly increases the number of cultural enterprises and the total tourism income. Meanwhile, the effect of Qinghai-Tibet Railway is sustainable. Mechanism studies find that Qinghai-Tibet Railway promotes the economic, social and cultural development along the line by stimulating investment and developing service industry, promoting employment, increasing population mobility and attracting tourists. Heterogeneity analysis shows that the economic, social, and cultural effects of the Qinghai-Tibet Railway have a greater impact on non-central cities along the railway than on central cities. These findings suggest that the Qinghai-Tibet Railway is conducive to structural transformation and shared prosperity in the Qinghai-Tibet region, and its economic, social and cultural effects are continuous. This quantitative analysis framework for the externalities of mega-railway projects provides theoretical support for promoting the high-quality development of similar projects, as well as the sustainable and harmonious regional development.

Key words: Qinghai-Tibet Railway, economic growth, income gap between urban and rural residents, cultural progress, difference-in-differences model (DID)

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