Dynamic Bidirectional Relationship between Urban Rail Transit and Urban Economy Agglomeration: A Case Study in China

Based on operation kilometers, amounts and station numbers of urban rail transit (URT) lines in a city, this study utilizes simultaneous panel data equations (SPDE) to comprehensively analyze the bidirectional dynamics of urban rail transit (URT) on urban economies. Drawing on data from 2010 to 2019 across 40 Chinese cities, we rigorously examine the SPDE model's robustness through elastic analysis and placebo tests. Economic variables within the SPDE framework are aggregated based on geographic population scales, yielding new endogenous variables that facilitate a deeper exploration of URT's impact on economic agglomeration. Our findings highlight URT's positive spillover effects, promoting both geographic and demographic economic agglomeration. Nevertheless, it is imperative to note that URT's capacity to ameliorate economic conditions remains constrained in cities with sluggish or stagnant development.