The Relationship Between Modern Railway Construction and Financial Market Integration: A Quantitative Study Based on Henan Province

Shuang Gao

2022

Abstract

Finance is the bloodline of national economy and the core of modern economy, and the development of financial market plays a vital role in regional development. The relationship between railroad construction and financial market integration is less discussed in the literature. This paper takes Henan, which is more exogenous, as a sample, and constructs financial indicators through recent complete grain price data using the STSM model; empirically analyzes the difference in the impact of the presence or absence of railroads on financial markets as well as divides the groups by railroad opening periods to discuss the complex impact of railroads on financial market integration in different opening periods. It is found that interest rates are lower in all areas along the railroad, but there are significant group differences. Among the groups by railroad opening period, the railroads that opened around 1910 and mainly connected to the central cities did not improve their integration with the provincial financial markets; the railroads that opened in the 1930s and mainly connected to the hinterland improved the regional financial market integration. This suggests that the impact of railroads on financial market development is subject to the economic relationships along the route, the economic attributes of each sector, etc., and that it is not appropriate to generalize. This helps to understand the divergence in empirical studies, but also highlights the impact of railroads on economic patterns and urbanization.

Paper Citation

in Harvard Style

Gao S. (2022). The Relationship Between Modern Railway Construction and Financial Market Integration: A Quantitative Study Based on Henan Province. In Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME; ISBN 978-989-758-636-1, SciTePress, pages 102-107. DOI: 10.5220/0012026500003620

in Bibtex Style

@conference{icemme22,
author={Shuang Gao},
title={The Relationship Between Modern Railway Construction and Financial Market Integration: A Quantitative Study Based on Henan Province},
booktitle={Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME},
year={2022},
pages={102-107},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012026500003620},
isbn={978-989-758-636-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME
TI - The Relationship Between Modern Railway Construction and Financial Market Integration: A Quantitative Study Based on Henan Province
SN - 978-989-758-636-1
AU - Gao S.
PY - 2022
SP - 102
EP - 107
DO - 10.5220/0012026500003620
PB - SciTePress