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Railroad development, temporal©\spatial externalities, and growth spillover: Theory and empirical evidence

Author:  Yun Chen ¡¢Wei Lijia *
Publication:  Journal of Regional Science £¬Volume 58, Issue 5£¬Pages 980-1002
Abstract:  This paper develops an extended Solow model by considering the time©\variant spillover effect of interregional economies. Instead of using fixed spatial distances among regions, the regions' temporal©\spatial distances are measured by constructing a database of train types and calculating the fastest region©\to©\region routes. We collect provincial economic data and railroads data over the period 2003¨C2012 in China to establish a dynamic temporal©\spatial panel model. The estimation results indicate significant temporal©\spatial externalities. Compared with classical spatial models, the temporal©\spatial model not only has a much better goodness©\of©\fit but also has consistent total effects, direct effects and indirect effects.

¡¡¡¡¡¾Keywords¡¿growth;railroad development;travel time;temporal-spatial externalities

Link: https://onlinelibrary.wiley.com/doi/abs/10.1111/jors.12407