Study on the Influence of High-speed Railway Opening on China's Urban and Rural Economic Development

Abstract

High-speed rail system in China is advancing at an impressive pace which has yet to reach a consensus among scholars regarding its effect on urban and rural economic development. This paper employs literature review and theoretical analysis to dissect the intrinsic mechanisms through which the launch of high-speed rail system lines affects urban and rural economic development, using personal observations to explore the complex relationship between the launch of high-speed rail system lines and urban-rural economic development. The study finds that the launch of high-speed rail system lines can accelerate the common development of urban and rural economies. The Siphon effect of high-speed rail system can exacerbate the imbalance in urban-rural economic development, while the diffusion effect can propel rural economic development into a fast lane. High-speed rail systems are "instrumental variables, with their effectiveness depending on the existing economic foundation, policy design, and regional development stage of both urbanized zones and rural regions. The effect of high-speed rail system on urban and rural economies hinges on supporting policies and development stages.