TRANSPORTATION AND ECONOMIC DEVELOPMENT: THE LINK BETWEEN HIGHWAY INVESTMENT AND ECONOMIC DEVELOPMENT - A TIME-SERIES INVESTIGATION: SPECIFIC ECONOMIC SECTORS. FINAL REPORT: APPENDIX V

A time series methodology is developed that differentiates the effects of highways on development from the effects of development on highways. This methodology uses pooled time-series and cross-sectional data on highway expenditures and county employment for the 87 Minnesota counties and all 9 economic sectors over the 25-year period 1957-1982 and includes classification of counties based on access, demographic and socioeconomic features. Results from vector autoregressions are tested against modern causality tests of Granger-Sims type. In the wholesale and natural-resource-based service sectors (e.g., tourism), increased highway expenditures result in long-term employment increases. While regionally very substantial, the impacts are distributional, i.e., the statewide impact is negligible. Government role is mostly reactive, increasing funding to counties whose economy is increasing, except in rural areas where government also attempts to stimulate declining economies. Funding decisions are highly sensitive to changes in the economy, especially in rural areas, and (as our evaluation of the Minnesota Department of Transportation (Mn/DOT) project selection process indicated) are primarily influenced by the District recommendation. Further, a new B/C project selection process is developed and tested on highway weight restriction policies in Northeast Minnesota. Both simulation with large I/O model and comparison with actual funding decisions made independently by Mn/DOT indicate agreement with our results. An extensive literature review and 175 references are included. This report consists of nine separate publications: an executive summary, the final report and seven appendices.

• Corporate Authors:

  University of Minnesota, Minneapolis

  Department of Civil and Mineral Engineering, 122 Civil and Mineral Engineering Building
  Minneapolis, MN  United States  55455-0220

  Minnesota Department of Transportation

  Materials and Research Laboratory, 1400 Gervais Avenue
  Mapplewood, MN  United States  55109
• Authors:
  • STEPHANEDES, Y J
  • Eagle, D
• Publication Date: 1989-5

Media Info

• Features: Figures; Tables;
• Pagination: 44 p.

Subject/Index Terms

• TRT Terms: Counties; Decision making; Economic development; Employment; Expenditures; Finance; Financing; Highways; Impacts; Project management; Time series analysis
• Uncontrolled Terms: Projects; Selecting
• Geographic Terms: Minnesota
• Subject Areas: Administration and Management; Economics; Finance; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00493624
• Record Type: Publication
• Report/Paper Numbers: MN/RC-89/16, 9RD0004
• Contract Numbers: 62179
• Files: TRIS, STATEDOT
• Created Date: Apr 30 1990 12:00AM