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A spatial autoregressive panel model to analyze road network spillovers on production

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  • Álvarez, Inmaculada C.
  • Barbero, Javier
  • Zofío, José L.

Abstract

The production function approach is used to introduce the effect of public infrastructure on economic growth focusing on its spillover effects. We improve the existing literature both from a conceptual and methodological perspective. As regressors we incorporate variables related to the new concepts of internal and imported transport infrastructure capital stocks, which are actually used in commercial flows, calculated by network analysis performed in GIS. The internally used capital stock represents own infrastructure that benefits accessing markets within the region itself, while the imported capital stock captures the spillover effect associated to the use of the infrastructure situated in neighboring regions. From a methodological perspective, we introduce spatial interdependence into these models, applying the most recent spatial econometric techniques based on instrumental variables estimation in spatial autoregressive panel models in comparison with Maximum Likelihood estimation methods. We illustrate the methodology with Spanish provincial panel data for the period 1980–2007. Results support the hypothesis that the imported capital has a positive spillover effect on production.

Suggested Citation

  • Álvarez, Inmaculada C. & Barbero, Javier & Zofío, José L., 2016. "A spatial autoregressive panel model to analyze road network spillovers on production," Transportation Research Part A: Policy and Practice, Elsevier, vol. 93(C), pages 83-92.
    • Handle: RePEc:eee:transa:v:93:y:2016:i:c:p:83-92
    DOI: 10.1016/j.tra.2016.08.018
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    Cited by:

    1. Luis Orea & Inmaculada C. Álvarez, 2020. "How effective has been the Spanish lockdown to battle COVID-19? A spatial analysis of the coronavirus propagation across provinces," Working Papers 2020-03, FEDEA.
    2. Alberto Gude & Inmaculada Álvarez & Luis Orea, 2018. "Heterogeneous spillovers among Spanish provinces: a generalized spatial stochastic frontier model," Journal of Productivity Analysis, Springer, vol. 50(3), pages 155-173, December.
    3. Konno, Akio & Kato, Hironori & Takeuchi, Wataru & Kiguchi, Riku, 2021. "Global evidence on productivity effects of road infrastructure incorporating spatial spillover effects," Transport Policy, Elsevier, vol. 103(C), pages 167-182.
    4. Jiao, Xiaoying & Li, Gang & Chen, Jason Li, 2020. "Forecasting international tourism demand: a local spatiotemporal model," Annals of Tourism Research, Elsevier, vol. 83(C).
    5. Qi, Guanqiu & Shi, Wenming & Lin, Kun-Chin & Yuen, Kum Fai & Xiao, Yi, 2020. "Spatial spillover effects of logistics infrastructure on regional development: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 96-114.
    6. Freiria, Susana & Sousa, Nuno & Calvo-Poyo, Francisco, 2022. "Spatial analysis of the impact of transport accessibility on regional performance: A study for Europe," Journal of Transport Geography, Elsevier, vol. 102(C).
    7. Lu Yu, 2021. "Study on Treatment Effects and Spatial Spillover Effects of Beijing–Shanghai HSR on the cities along the line," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 671-695, December.
    8. Nawaz, Saima & Mangla, Inayat Ullah, 2021. "The economic geography of infrastructure in Asia: The role of institutions and regional integration," Research in Transportation Economics, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Transport spillovers; Production function; Panel data econometrics; GIS (Geographic Information Systems); Market access; Network analysis;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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