Highlights
China has used high speed rail has to drive the economic growth of its inland regions since 2004.
High speed trains shrink the travel times between cities. It allows economic activities to spread across regions, so that more developed regions can drive the development of less developed regions.
The lesson for Australia is that if we want our regional cities to grow, then we must connect them with high speed rail if they are more than 150km from another major city. In addition, if a high speed rail network is built, then regional cities on it will grow faster, with higher productivity that justifies the investment in high speed rail.
