Discussion Papers 2018

CIRJE-F-1097	"Impacts of High-Speed Rail Construction on Urban Agglomerations: Evidence from Kyushu in Japan"
Author Name	Okamoto, Chigusa and Yasuhiro Sato
Date	October 2018
Full Paper	PDF File
Remarks	Forthcoming in Journal of Asian Economics

Abstract
High-speed rail integrates regions and cities, and thus can possibly have significant im- pacts on the distribution of economic activities. Using the opening and extensions of a high-speed rail, Shinkansen, in Kyushu, Japan, we examine its effects on the distribution of economic activities across urban agglomerations. We focus on changes in land prices and estimate hedonic price equations to conduct a difference-in-difference analysis. We find that the large metropolitan areas gained from the high-speed rail by experiencing increases in land prices, whereas small metropolitan areas located between them lost by experiencing decreased land prices. However, such positive effects are shown to be limited to areas close to Shinkansen stations.

Abstract

High-speed rail integrates regions and cities, and thus can possibly have significant im- pacts on the distribution of economic activities. Using the opening and extensions of a high-speed rail, Shinkansen, in Kyushu, Japan, we examine its effects on the distribution of economic activities across urban agglomerations. We focus on changes in land prices and estimate hedonic price equations to conduct a difference-in-difference analysis. We find that the large metropolitan areas gained from the high-speed rail by experiencing increases in land prices, whereas small metropolitan areas located between them lost by experiencing decreased land prices. However, such positive effects are shown to be limited to areas close to Shinkansen stations.