Can high-speed rail have a transformative effect on the economy?

In this paper, we address the question as to whether there is a clear and robust economic theory of the transformational impact of high-speed rail and if there is any consistent evidence to support it? The paper uses evidence from the North-west European High-Speed Rail network and a more detailed study of the UK's first high-speed line, HS1. This is followed by a discussion of the various claims and counter-claims for the impact of the proposed HS2 that will link London with Birmingham, Leeds and Manchester. On the basis of this some of the implications for the appraisal of such projects are considered. The main conclusion from the paper is that transport infrastructure by itself is not likely to be transformative, but coupled with other policy interventions it can contribute to such an effect.