HIGHWAY INVESTMENT AND REGIONAL ECONOMIC EFFECTS

A FRAMEWORK IS DESCRIBED FOR EVALUATING THE RELATIONSHIP BETWEEN IMPROVED HIGHWAYS AND REGIONAL ECONOMIC ACTIVITY. THE RESEARCHERS DEVELOP A METHODOLOGY FOR AUGMENTING THE HARVARD MULTIREGIONAL INPUT-OUTPUT MODEL SO THAT IT CAN BE USED TO MEASURE REGIONAL EFFECTS FROM HIGHWAY INVESTMENT. SIMPLE DATA CONSISTING OF SHIPMENTS AND RELATED DATA FOR FIVE INDUSTRIES AND SEVEN PRODUCTION AREAS WERE USED TO COMPUTE TWO MEASURES OF INTERREGIONAL TRADE--SHIPMENTS AND GRAVITY COEFFICIENTS. HOW REGIONAL ECONOMIC EFFECTS RELATE TO COST AND QUALITY OF TRANSPORTATION AND HOW ESTIMATES OF THESE EFFECTS CAN BE USED IN COST/BENEFIT ANALYSIS ARE DISCUSSED. PRELIMINARY ANALYSIS INDICATED A LARGE VARIATION IN VOLUME OF SHIPMENTS AND VALUES FOR GRAVITY COEFFICIENTS WITHIN EACH OF THE FIVE COMMODITY GROUPS. A NEGATIVE RELATIONSHIP BETWEEN DISTANCE AND EACH OF THE TWO MEASURES OF TRADE IS SUGGESTED. ADDITIONAL ANALYSIS REVEALS A CONSIDERABLE VARIATION IN VALUES OF BOTH GRAVITY COEFFICIENTS AND SHIPMENTS AMONG PAIRS OF REGIONS THAT ARE APPROXIMATELY THE SAME DISTANCE APART. IT IS CONCLUDED THAT THE MULTIREGIONAL INPUT-OUTPUT MODEL IS A REASONABLE APPROACH FOR EVALUATING INCREASES IN FINAL DEMAND RESULTING FROM HIGHWAY INVESTMENT AND CHANGES IN TRADE PATTERNS RESULTING FROM IMPROVED HIGHWAY NETWORKS. THEY RECOMMEND INVESTIGATION OF ALTERNATIVE TECHNIQUES WHICH MIGHT REDUCE DATA REQUIREMENTS AND COMPUTATIONAL PROBLEMS. /BPR/

  • Corporate Authors:

    Jack Faucett Associates, Incorporated

    4550 Montgomery Avenue, Suite 300N
    Bethesda, MD  United States  20814

    Bureau of Public Roads /US

    400 7th Street, SW
    Washington, DC  United States  20590
  • Publication Date: 0

Subject/Index Terms

Filing Info

  • Accession Number: 00200917
  • Record Type: Publication
  • Source Agency: Bureau of Public Roads /US
  • Files: TRIS
  • Created Date: Jul 27 1970 12:00AM