Research On Industry Spillover Routine Of Chinese Railway Transportation

ABSTRACT:As a basic industry, railway industry plays an important role in the development of national economy. Since the reform and opening up, Chinese railway industry presents a rapid development as an important part of comprehensive transportation system which influence on the economic growth draws attention of researchers. Through passenger and freight services, it provides raw materials, fuels, intermediate goods and passenger transportation for economic sectors in the industrial chain which promotes the industry agglomeration and regional coordinated development. Therefore, it can promote the sustainable development of national economy to grasp the rule of collaborative development of railway industry and other industries to develop railway’s forerunning function.Despite the domestic and international researchers have studied the effect of infrastructure on economic growth intensively, transportation infrastructure are still considered as an investment variable to promote regional economic growth in the western mainstream economics analysis framework, which not formulated the real contribution of railway operation. This paper attempts from the angle of external economy of railway to explore this mechanism.This paper applies simultaneous equation to measure the railway spillover effects on industries based on three spillover channels of labor, capital and product. Using a sample of Chinese railway industry,35manufacturing industries and11services ranging from1995to2012, we analyze the railway spillover effects on extent, spillover channel and sectors distribution, and compare changes of spillover effects before and after2008.The conclusions of empirical analysis are:(1) railway spillover depends on the technology association between railway and other industries and railway’s practical transport level. The spillover effect products by labor, capital and product channels and reflects external economy on other industries. The spillover effect on manufacturing industry’s productivity is0.02by labor and capital channels, which has an increasing trend after2008.(2)There are differences in the spillover channel and extent among four industrial clusters. The labor channel is the most stable and widely radiating; capital and product channels have significant differences among different industries.(3)Public management and social organizations has the highest degree of0.804in all service industry. Comparison of the spillover effect estimation and the influence coefficient finds that the latter estimation may underestimate the promotion of railway to other industries. Finally, judged on polices, the railway transportation should establish a comprehensive service system based on spillover in exchange for broader, more specialized and closer collaboration to seek win-win situation from the collaboration.