Roads, railroads and decentralization of Chinese cities

We investigate how configurations of urban railroads and highways influenced urban form in Chinese cities since 1990. Each radial highway displaces about 4 percent of central city population to surrounding regions and ring roads displace about an additional 20 percent, with stronger effects in the richer coastal and central regions. Each radial railroad reduces central city industrial GDP by about 20 percent, with ring roads displacing an additional 50 percent. Similar estimates for the locations of manufacturing jobs and residential location of manufacturing workers is evidence that radial highways decentralize service sector activity, radial railroads decentralize industrial activity and ring roads decentralize both. Historical transportation infrastructure provides identifying variation in more recent measures of infrastructure.