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.
SPATIAL ECONOMIC IMPACTS OF TRANSPORT INFRASTRUCTURE SUPPLY
This paper contains a survey of studies on the spatial economic impacts of transport infrastructure supply. A theoretical framework is developed where impacts of transport infrastructure on spatial economic development are measured in terms of productivity changes and (re)location behaviour. The transmission takes place via changes in generalized transport costs and accessibility. Methods for analyzing transport infrastructure impacts are classified according to the level of aggregation of the data (aggregate versus disaggregate) and the degree of model use (modelling versus nonmodelling approaches). Two spatial levels are distinguished: intra-urban versus intraregional. At the intraregional level it is found that integrated land use-transport models usually yield infrastructure impacts of limited size. Much larger impacts are usually found when entrepreneurs are directly interviewed about these impacts as they perceive them. At the interregional level, production function approaches usually lead to the conclusion that infrastructure supply has a considerable impact on the productivity of other production factors. On the other hand, the relocation impacts of transport infrastructure on economic activity as predicted by multiregional models are usually limited.
Welfare economic impacts of transportation improvements in a peripheral region
2008
We set out to investigate whether transportation improvements can trigger welfare economic impacts in a peripheral region. The paper addresses this issue through the development of a general equilibrium labor market model with a transportation component. The model is implemented to a set of 101 core and peripheral cities in Israel. Numeric simulations are carried out to test the research hypotheses regarding positive relationship between improved accessibility and enhanced economic welfare. Economic welfare is measured in terms of efficiency and equity impacts. The results of the simulations show that transportation improvements in the form of auto travel time reductions may lead to substantial welfare benefits in the peripheral region considered in terms of increased output, productivity and wages.
The effects of transport infrastructure changes : a general equilibrium perspective
2013
Measures of the value of public investments are critical inputs into the policy making process. In the existing literature public investments are often valued through their effects on local equilibrium factor prices wages and land rents as first suggested by Rosen (1974) and Roback (1982). We extend this methodology to measure the value of public transport infrastructure, while taking into account the network character of this amenity. Furthermore, we disentangle and calculate the relative importance of various economic effects induced by transport infrastructure, including the effects on: modal split, spatial distribution of economic activities, firms’ productivity.
Journal of the Transportation Research Forum, 2011
Prior analysis regarding transportation infrastructure has often focused on the aggregate effects of public investment on economic growth or activity, usually at a national or state level. Modeling efforts that attempt to treat all counties as equivalent units, while assuming a homogeneous modeling structure for all the units, may miss important information regarding the statistical and causal relationships between economic activity and transportation infrastructure. This study examines the interrelationships between infrastructure and activity using two Washington State highway infrastructure datasets in combination with county-level employment, wages, and establishment numbers for several industrial sectors for a subset of counties from 1990 to 2004. Estimates using vector autoregressions, error correction models, and directed acyclic graphs are made. The results show that the relationships between infrastructure investment and economic activity are often weak and are not uniform ...
Estimating the agglomeration benefits of transport investments: some tests for stability
Transportation, 2011
The case for including agglomeration benefits within transport appraisal rests on an assumed causality between access to economic mass and productivity. Such causality is justified by the theory of agglomeration, but is difficult to establish empirically because estimates may be subject to sources of bias from endogeneity and confounding. The paper shows that conventional panel methods used to address these problems are unreliable due to the highly persistent nature of accessibility measures. Adopting an alternative approach, by applying semiparametric techniques to restricted sub-samples of the data, we find considerable nonlinearity in the relationship between accessibility and productivity with no positive effect to be discerned over broad ranges of the data. A key conclusion is that we are unable to distinguish the role of accessibility from other potential explanations for productivity increases. For transport appraisal, this implies that the use of conventional point elasticity estimates could be highly misleading.
Transportation Research Record: Journal of the Transportation Research Board, 2021
Transportation planners are increasingly recognizing the importance of access in enabling employment growth and better paying job opportunities for residents. Although regional economic impact analysis is often an important element of transportation investment evaluation by state departments of transportation, it can be particularly challenging for metropolitan area planners because existing economic modeling methods do not fully account for the multifaceted roles that transportation links play in affecting access within large, polycentric metropolitan areas. This article examines these issues and presents information from a study of the Chicago region, to evaluate statistical relationships of employment cluster size and wage levels to zonal differences in business-to-business connectivity and population connectivity. It presents elasticities of employment and wage impact associated with various access measures for different sectors of the economy. These findings point to the import...
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.