Highways and Economic Productivity: Interpreting Recent Evidence

Abstract

This paper reviews the recent literature on public infrastructure and economic productivity, with special attention to the particular case of highway infrastructure. Recent evidence suggests that, at the margin, highway infrastructure contributes little to state or national productivity. This is consistent with studies that show relatively small land use impacts from modem highways. Yet the idea that highways erahance economic health is common in the policy and planning communities. Two explanations can help reconcile this divergence between academic research and popular perception. First, some of the economic development observed near highways might not actually be caused by the highway. Second, some of the economic development near highways might be a shift of economic activity away from other areas. Either explanation suggests the need for reforms in highway project analysis and funding. Appropriate policy reforms and directions for future research are suggested.

Impactos de investimentos em infraestruturas rodoviárias sobre o desenvolvimento regional no Brasil - possibilidades e limitações

“…O caso da BR-232-PE corrobora com as reflexões de Banister e Berechman (2000), Princinote e Aragão (2009), e Boarnet (1995), em relação às condições e sinergias pré-vias, pois o investimento foi realizado em uma região com maior potencial de crescimento e que o crescimento diferencial nos anos seguintes pode ter sido causado por uma…”

Untitled

“…The result may be relocation of firms, but this can weaken economies of scale (Bogart 1998). Highways connecting the city to outlying areas can induce firms to relocate, thereby reducing agglomeration diseconomies of scale through sacrificing some economies, though overall economic improvement is debatable (Boarnet 1997). Cities thus spread out, and although the urban area may contain more people and jobs, the advantages of agglomeration economies are weakened.…”

Infrastructure as a Catalyst for Regional Integration, Growth, and Economic Convergence: Scenario Analysis for Asia

“…There are a variety of survey articles that summarize and draw conclusions from the assessment literature for physical infrastructure (see for example, Munnell 1992, Gramlich 1994, �isher 1997, and Boarnet 1997. Some of this research finds insignificant or even negative net economic effects, while others estimate large positive effects.…”