High-Speed Railroad and Economic Geography: Evidence from Japan
Surging high-speed railroad investments may encourage the formation of megacities due to further agglomeration in service industries. This can have profound implications for urban policies on society, demographics, and environment.
This study discusses whether high-speed railroad (HSR) polarizes or balances economic geography using the 1982 opening of two major HSRs in Japan (Shinkansen). It finds that both agglomeration and decentralization could occur. While service industry tends to agglomerate toward the core city, manufacturing industry may decentralize toward peripheral cities.
In noncore areas of Japan, the study estimates service employment decreased by 7%, while manufacturing employment increased by 21%. Moreover, the proximity between peripheral and core cities also matter. Cities within approximately 100 kilometers of Tokyo expanded, while more distant cities shrank. The net result is that Tokyo metropolitan area agglomerates because of HSR.
Contents
- Introduction
- Hypotheses
- Empirical Setting
- Empirical Strategy
- Empirical Evidence
- Conclusion
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