Subways Near the Subway: Rail Transit and Neighborhood Catering Businesses in Beijing

Posted: 11 Nov 2019

See all articles by Siqi Zheng

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate; Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning; Hang Lung Center for Real Estate, Tsinghua University

Xiaoke Hu

Tsinghua University - Hang Lung Center for Real Estate

Jianghao Wang

Chinese Academy of Sciences (CAS) - Institute of Geographic Sciences and Natural Resources Research (IGSNRR)

Rui Wang

University of California, Los Angeles (UCLA)

Date Written: October 30, 2019

Abstract

Beijing has made enormous investment in rail transit since the late 2000s. The rapidly growing subway system greatly improves the accessibility of neighborhoods nearby subway stations and often increases neighborhood population and employment densities, both resulting in a larger market for local retail businesses. While numerous studies have shown that rail transit investment tends to raise property value close to stations, few have provided direct evidence on rail transit's effects on local consumer amenities. Using citywide catering establishment data since 2004 from dianping.com (China's yelp.com), we study the effects of new subway stations on catering openings, diversity and consumer demand in neighborhoods near a subway station opened during 2004–2013. We find that a new subway station positively contributes to the quantity, diversity and consumer demand of nearby food and beverage services. These effects are heterogeneous spatially and in terms of catering types. This study enriches the limited extant empirical evidence on urban rail transit's impact on local economic activities and consumer amenities. In China, where unprecedented rail transit expansion has transformed large cities like Beijing in many ways, our findings can help us better understand how major public investment in cities affects local economy, quality of life, the housing market and related further policy concerns.

Suggested Citation

Zheng, Siqi and Hu, Xiaoke and Wang, Jianghao and Wang, Rui, Subways Near the Subway: Rail Transit and Neighborhood Catering Businesses in Beijing (October 30, 2019). Available at SSRN: https://ssrn.com/abstract=3478247

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate ( email )

Building 9-323
Cambridge, MA 02139
United States

HOME PAGE: http://https://siqizheng.mit.edu/

Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning ( email )

77 Massachusetts Avenue
Cambridge, MA 02139
United States

Hang Lung Center for Real Estate, Tsinghua University ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://https://siqizheng.mit.edu/

Xiaoke Hu

Tsinghua University - Hang Lung Center for Real Estate

HeShanHeng Building
Beijing, 100084
China

Jianghao Wang

Chinese Academy of Sciences (CAS) - Institute of Geographic Sciences and Natural Resources Research (IGSNRR) ( email )

Beijing
China

Rui Wang (Contact Author)

University of California, Los Angeles (UCLA) ( email )

405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
77
PlumX Metrics