Transportation Infrastructure, Productivity and Externalities

This paper summarizes the results of three studies that link the investment in highway infrastructure to productivity growth in the manufacturing sectors of the United States, Spanish and Indian economies. The objective of this paper is to: (1) trace the overall impact of highway investment on the growth of this strategic sector; (2) examine the interregional effects of such investments, with particular attention to the issue of whether highway investment encourages regional convergence and relocation of economic activity; and (3) assess the extent of the spillover externalities on the manufacturing industry associated with such investments. The paper describes how the last issue is of particular importance for infrastructure policy, since spillover externalities tend to go uncounted in formal project investment analyses, which leads to the possibility of underinvestment. The comparative study of three countries at different stages of economic development, using virtually the same model, allows for another issue to be examined: the possibility that the effects of infrastructure investment different according to the level of development and the extent to which existing infrastructure networks have already been built up.

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  • Corporate Authors:

    European Conference of Ministers of Transport

    2 rue Andre Pascal
    F-75775 Paris Cedex 16,   France 
  • Authors:
    • Hulten, Charles R
  • Publication Date: 2007

Language

  • English

Media Info

  • Media Type: Print
  • Features: Bibliography; Tables;
  • Pagination: pp 7-27
  • Monograph Title: Transport Infrastructure Investment and Economic Productivity. Report of the One Hundred and Thirty Second Round Table on Transport Economics

Subject/Index Terms

Filing Info

  • Accession Number: 01054210
  • Record Type: Publication
  • ISBN: 9789282101247
  • Files: TRIS
  • Created Date: Jul 3 2007 12:44PM