Transportation network and venture capital mobility: An analysis of air travel and high-speed rail in China

Transportation network plays a critical role in reshaping the spatial geographical economy in terms of population, urban form, output and so on. But the impact of transportation on capital mobility is seldom revealed. Using venture capital investment events and airline network as well as high-speed...

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Bibliographic Details
Published in:Journal of transport geography 2020-10, Vol.88, p.102852, Article 102852
Main Authors: Duan, Liaoliao, Sun, Weizeng, Zheng, Siqi
Format: Article
Language:English
Subjects:
Air transportation
Air travel
Aircraft
Capital mobility
Cities
Heterogeneity
High speed rail
Mobility
Transportation networks
Travel
Travel time
Venture capital
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Summary:Transportation network plays a critical role in reshaping the spatial geographical economy in terms of population, urban form, output and so on. But the impact of transportation on capital mobility is seldom revealed. Using venture capital investment events and airline network as well as high-speed rail network in China, this paper examines the effects of transportation network on capital mobility. We find that 1% decline in travel time will lead to increase in VC investment deals by 0.02. Heterogeneous results indicate that small firms, young firms, and emerging industries benefit more from the transportation network, which demonstrates the role of transportation network in alleviating information asymmetries. In addition, heterogeneity on VC flow direction offers suggestive evidence that transportation network is likely to alleviate development imbalance within wealthier cities while widening the gap between wealthier cities and poorer cities.
ISSN:0966-6923
1873-1236
DOI:10.1016/j.jtrangeo.2020.102852