The siphoning effect of transportation infrastructure on tourism development: Evidence from China

Abstract

Although transportation infrastructure plays a crucial role in economic development, its impact on interregional development inequalities remains under-explored. By using a rigorous and effective instrumental variable-difference in differences (IV-DID) empirical strategy based on a unique data in China, this study evaluates the impact of the high-speed rail (HSR) on regional disparities between cities from the perspective of tourism development. The findings reveal a significant “siphoning effect” linked to the opening of HSR. While the introduction of HSR markedly enhances tourism development, its benefits are predominantly realized in cities that already possess ample tourism resources, superior service quality, and higher city positioning. Conversely, less advantaged cities do not experience a comparable boost in tourism growth. This disparity indicates that HSR, rather than equalizing opportunities, may actually intensify existing inequalities in tourism development. Cities with pre-existing advantages continue to flourish, whereas those with fewer resources gain little from HSR implementation. Our results contribute to the limited evidence regarding the influence of transportation infrastructure on regional tourism disparities. The findings carry profound implications for policymakers, underscoring the need for strategies that not only promote overall development but also specifically address and mitigate the widening gap between more and less advantaged regions. Such policy considerations are vital in ensuring regions equitable benefit from infrastructure advancements like HSR, thereby fostering balanced regional growth and development.