Endogenous Regional Growth through Transportation Investment (original) (raw)

“Regional Economic Impacts of the Transportation Industry

International Economics and Finance Journal

This paper presents the findings of a regional economic impact study of the Transportation, Distribution, and Logistics (TDL) industry in Northwest Indiana. Using a regional input-output model, the economic impacts of the TDL industry were derived. Tangible estimates of the contribution of the TDL industry in sales, jobs, earnings, value added, and tax revenue in the region are reported in the paper. Based on the study findings, public policy recommendations are made that can influence the TDL industry in Northwest Indiana through gains in freight productivity.

Contribution of transportation investments to county output

Transport Policy, 2007

The impact of highway investments on economic development is investigated. Spatial and temporal aspects of transportation investments are studied by analyzing lagged and spillover effects, and the contribution of past output levels to the current output using a dynamic model. County level data from 1990-2000, in New York/New Jersey metropolitan area is used. Results show that the spillover effects decrease with distance from the investment location, that there is a positive time lag effect between the time the investment is made and its impact on output, and that the current level of output depends heavily on past levels.

Surface Transportation and Regional Output: A Spatial Panel Approach

SSRN Electronic Journal, 2000

This paper studies regional impact of three mature public surface transportation infrastructures in the Northeast corridor of the US: highway, public railway and public transit. Infrastructure stock is valued in real terms from 1991 to 2009. A spatial panel approach with fixed effects is adopted to test the hypothesis of spillovers by allowing for spatial dependence. The result shows that public surface transportation infrastructure in general does have a significant impact on regional output, most of which is from spillover effect; highways have an overwhelming influence through both local effects and spillover effects. The impacts from public railway and public transit are not significant, but transit does show a positive though small spillover effect.

Transportation Costs, Increasing Returns and Regional growth: An Interregional CGE Analysis

2004

The purpose of this paper was threefold. First, we presented a flexible analytical framework, based on sound and consistent economic theory and data, in order to assess the likely state/sectoral/income effects of policy changes in Brazil. This is the first fully operational interstate CGE model implemented for the Brazilian economy, based on previous work by the author and associates. Among

Transportation Investment and Economic Development

2008

This study contains information that was gathered over a three-year period, from December 1998 through October 2001. Since development plans in communities change over time, as plans are updated and new plans are adopted, this study may contain some outdated information. In addition, certain economic developments could not be named for competitive reasons, but were included in a general or aggregate sense.

Adding a Freight Network to a National Interstate Input-Output Model: Implications for California

2009

The state of the nation's infrastructure is the subject of widespread discussion and comment because it is thought to include many deteriorating and unsafe bridges. Ever since the terrorist attacks of 9/11, there has been increasing concern over the extent to which an attack on infrastructure could result in serious economic disruption. This research develops a model to analyze the economic consequences of an attack on a major element of the highway network. We add a freight network to a national multiregional economic impact model and make freight traffic flows endogenous. The use of a sub-national interstate model recognizes that most infrastructure planning is at the state level and most political leaders' interest is local. We base our approach on the National Interstate Economic Model (NIEMO) and refer to an elaboration that we name Transportation network and the National Interstate Economic Model (TransNI-EMO). The new model enables us to study the state-specific and industry-specific economic impacts of some significant changes in the nature of highway freight movements. We tested the model for selected freight movements in and out of California. The results are entirely plausible and encourage us to elaborate and test the model for hypothetical disruptions of freight traffic throughout the US.

Transport infrastructures and regional growth: evidence of the Spanish case

2002

This paper analyses the impact of transport infrastructures on the economic growth of both regions and sectors, distinguishing among modes of transport. It also attempts to capture the spillover effects or network effects associated with transport infrastructures. Two different methodologies are used: the first adopts an accounting approach on the basis of a regression on total factor productivity (TFP) indices, the second uses econometric estimates of the production function. Our study obtains very similar elasticities with both methodologies for the private sector of the economy, both for the aggregate capital stock of transport infrastructures and for the various types of infrastructure. Important network effects of these infrastructures on the private sector have also been observed. However, the disaggregated results for sectors of production are not conclusive.

Spatial Impact of Transportation Infrastructure: A Spatial Econometric CGE Approach

Social Science Research Network, 2013

Transportation infrastructure plays an important role in regional economic development both in the stimulation of growth and as a response to output expansion. However, measuring these effects quantitatively has been a challenge due to the complicated impact mechanisms of transportation infrastructure. This complication is due to two reasons: first, regional impacts of transportation infrastructure are achieved through a mechanism that involves both a demand influence through the variation of transportation price and a supply influence implemented through the variation of transportation cost; second, impacts of transportation are usually evaluated in a regional context where the presence of unobserved local or regional variables may give rise to spatial autocorrelation. As a result, impact analysis may become biased and spurious. This study develops a new method called Spatial Econometric Computable General Equilibrium (SECGE) model, which integrates both spatial econometrics with equilibrium modeling techniques to improve the effectiveness of impact analysis on transportation infrastructure. This study differs from previous studies in the following three aspects: First, through a spatial autocorrelation test, the presence of spatial dependence is observed and confirmed among the elasticities of factor substitution in the US. To deal with spatial dependence, spatial panel econometric techniques are introduced to estimate the elasticity of factor substitution of different sectors for the Constant Elasticity of Substitution (CES) production function with consideration of spatial direct and indirect effects. and traditional OLS estimates. Although the differences are relatively small in this aggregate case study, implications for more sensitive disaggregated regional models are clear.