Using impacts on commuting as an initial test of wider economic benefits of transport improvements: Evidence from the Eiksund Connection

The existence of productivity externalities of transport improvements has seen growing attention in the last decade. The theoretical foundation of such effects is a combination of changes in city size—through larger labor markets—and a positive relationship between city size and productivity. Most empirical contributions study this last relationship, while little attention has been given to effects of larger labor markets. This paper investigates effects of larger labor markets, using commuting. As a case study, the paper uses the Eiksund Connection in Norway, which is a sub-sea tunnel replacing a ferry service. Using the synthetic control method, the paper shows commuting effects for only the municipalities with the largest accessibility improvement and the strongest need for specialized skills; the effects for the other municipalities are insignificant. Given standard assumptions of the relationship between productivity and city sizes, the result is consistent with positive, but low productivity externalities.


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  • Accession Number: 01685705
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 10 2018 3:13PM