DO HIGHWAY INVESTMENTS SPUR ECONOMIC DEVELOPMENT?

This study provides a theoretical and empirical exploration of the influence of highway investment on economic development. Principles of public economy are applied to categories of potential benefits and results of a case study are presented. The authors examine efficiency criterion, impact area, and taxonomy of benefits. The case study of a projected highway juxtaposes the reduction of vehicle operating cost savings, accident cost savings, and travel cost savings against the increased economic activity which results from the actual construction of the highway, the improved competitive position of the area affected, and roadside service growth. Estimations using IMPLAN, an input-output model, revealed that justification of development on economic grounds depends on the types of benefits included, and that the question of state versus federal funding should be determined by the final economic beneficiary.

• Corporate Authors:

  University of Iowa, Iowa City

  Iowa City, IA  United States  52242
• Authors:
  • Forkenbrock, D J
• Publication Date: 1990-6-5

Media Info

• Pagination: 6 p.

Subject/Index Terms

• TRT Terms: Case studies; Economic development; Federal assistance programs; Federal government; Finance; Investments; Private enterprise; Transportation
• Uncontrolled Terms: Federal programs
• Subject Areas: Finance; Transportation (General); I10: Economics and Administration;

Filing Info

• Accession Number: 00601825
• Record Type: Publication
• Files: TRIS, STATEDOT
• Created Date: Nov 30 1990 12:00AM