Evaluating the Regional Economic Impacts of High-Speed Rail and Interregional Disparity: A Combined Model of I/O and Spatial Interaction

Abstract

Among the benefits of high-speed rails (HSRs) discussed from various aspects, indirect benefits may contribute to medium- and long-term economic impacts such as an increase in service supply and gross regional product (GRP). In order to estimate the economic impacts, we modeled I/O–spatial interaction by combining the inter–industrial transactions shown on the I/O table with the geospatial distance decay of economic mass through passenger transportation. In addition, the regional economic impacts, as a part of the indirect benefits, were evaluated by the model applied to the Mumbai–Ahmedabad High-Speed Rail (MAHSR) corridor in India, which is an emerging country with remarkable economic growth. The results showed the economic impacts on each zone and each industry along the MAHSR corridor as a relative distribution. The unique feature of this approach is that it is possible to evaluate the geographic distributions and interregional disparity of economic impacts by combining the industrial I/O relationships with the changes in passenger accessibility associated with a large-scale transportation project such as an HSR. Moreover, this method can be applied to various countries and regions where detailed I/O statistical data, such as interregional I/O tables, are difficult to obtain, as well as various transportation project evaluations taking into account interregional equity.