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- W3011708481 abstract "Abstract This article investigates the effects of an urban transit line, opened in late 2012, on startup firms of five major industries in Hangzhou China. We use geo-coded firm-level longitudinal data and apply geographical informational software (GIS) to draw a 50 × 50 grid on to the map. For each grid-cell, we count the number of startup firms and use each grid-cell as an observation unit for regressions. The kernel density estimation uncovers the distributional change of startups of different distances to the nearest transit stations and graphically shows that within 1 km areas of transit stations experience a surge of new startups. Using difference-in-differences Poisson regression with matching methods, we find the effect of the transit on nearby business formation is significant: the number of retail and technology firms increases by 42% and 29% respectively, while the effects are relatively insignificant and weak for business service, construction, and manufacture firms. Further, we provide evidence that the transit effects are heterogeneous in terms of firm size and spatial dimension. First, the positive effects fade away in distance, and the attenuation is larger for technology than retail firms. Second, the agglomeration effects triggered by the new transit mostly come from firms with large registered capital. We posit that in addition to agglomeration benefits to firms, transit development also causes urban congestion costs that raise business operating cost and potentially negatively impact the small firms that are cost-sensitive." @default.
- W3011708481 created "2020-03-23" @default.
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- W3011708481 date "2020-05-01" @default.
- W3011708481 modified "2023-09-27" @default.
- W3011708481 title "The impact of urban transit on nearby startup firms: Evidence from Hangzhou, China" @default.
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- W3011708481 doi "https://doi.org/10.1016/j.habitatint.2020.102155" @default.
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