On the Railways of Growth: China’s Railway, Technology and Economic Growth

Abstract: Railway expansion is usually associated with containing and supporting economic growth. This particular research approaches railways from the angle of technological potential. It explores whether railways can drive China towards technology-led growth, and if so, the way in which this process occurs. The study uses a theoretical framework of complementarities adjusting it to the qualitative analysis of railway expansion. It helps to uncover major technology-led areas of growth in China’s railway industry and their broader potential impact on economic development. Significant conclusion of the research is that railway expansion induced the development of a new major technology-led growth area in China – High Speed Railway. HSR results into the increased demand for technology commercializing the railway industry, and attracts new partnerships, through which massive amount of technology transfer with the biggest local railway equipment supplier occurs. As an outcome, China’s domestic suppliers become more independent and competitive. The research makes a contribution to technology-led, efficiency-oriented view on China’s economy.