THE INFLUENCE OF ROAD PROJECTS ON THE ECONOMIC DEVELOPMENT OF SOCIETY

VAEGPROJEKTENS INVERKAN PAA SAMHAELLENAS EKONOMISKA UTVECKLING

Major investment in a road project is generally considered to stimulate economic growth and development in the affected area. Consideration of cumulative effects may produce different priorities from user-benefit estimates, for instance when there are large regional differences in employment. Investigation of cumulative effects were made in Finland to find the income distribution effects of planned road projects. Income effects in a region result from investments made from outside, while capacity effects are due to increases in fixed capital and production capacity owing to the investment. Six improvement schemes in six municipalities were examined using statistics and postal enquiries to companies and local authorities. The attitude of a company to a road project was found to depend on its position relative to the road. Location of industrial companies depends mainly on supply and skill of labour, while the most important factor for service firms is nearness of the market. Access to main routes is very important for all companies. Turnover and labour in industrial companies rose faster nearer the road than elsewhere, while for commercial companies this was fastest in town centres. Cumulative effects are very small, being 3-4% of annual turnover of industrial companies. /TRRL/

  • Supplemental Notes:
    • Nordiska Vaegtekniska Foerbundets 12. Kongress, Finland, 13-17.6 1977. Direct inquires to Herbert Nordin, National Swedish Road Administration (Centralfoervaltningen)
  • Corporate Authors:

    Swedish National Road Administration

    Fack S-10220
    Stockholm 12,   Sweden 
  • Authors:
    • HALLA, N
  • Publication Date: 1977

Language

  • Swedish

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00184383
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • Files: ITRD, TRIS
  • Created Date: Jan 13 1979 12:00AM