IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v131y2023icp139-155.html
   My bibliography  Save this article

The impact of transport infrastructure on firms’ location decision: A meta-analysis based on a systematic literature review

Author

Listed:
  • Champagne, Marie-Pier
  • Dubé, Jean

Abstract

This paper proposes to explore the existing literature on the impact of transportation infrastructure on firms’ location decision. Using three distinct databases (EconLit, International Bibliography of the Social Sciences and Web of Science), the research identifies 338 potential papers, with 52 of them retained for the analysis. The paper presents a complete descriptive analysis of the selected papers, as well as a meta-analysis based on all the reported statistics. From a quantitative perspective, the meta-analysis results suggest a more positive and significant impact of transport infrastructure on finance, insurance, and real estate activities (FIRE). The meta-analysis also highlights the importance of taking into account the spatial and temporal dimensions of location activities when evaluating the impact of transport infrastructure. The omission of one of those dimensions might lead to overestimation of the effect, and therefore bias in the observed results.

Suggested Citation

  • Champagne, Marie-Pier & Dubé, Jean, 2023. "The impact of transport infrastructure on firms’ location decision: A meta-analysis based on a systematic literature review," Transport Policy, Elsevier, vol. 131(C), pages 139-155.
  • Handle: RePEc:eee:trapol:v:131:y:2023:i:c:p:139-155
    DOI: 10.1016/j.tranpol.2022.11.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X22003353
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tranpol.2022.11.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dominique Peeters & Jacques-François Thisse & Isabelle Thomas, 2000. "On High-Speed Connections and the Location of Activities," Environment and Planning A, , vol. 32(12), pages 2097-2112, December.
    2. Gibbons, Stephen & Lyytikäinen, Teemu & Overman, Henry G. & Sanchis-Guarner, Rosa, 2019. "New road infrastructure: The effects on firms," Journal of Urban Economics, Elsevier, vol. 110(C), pages 35-50.
    3. Jenny Schuetz, 2015. "Do rail transit stations encourage neighbourhood retail activity?," Urban Studies, Urban Studies Journal Limited, vol. 52(14), pages 2699-2723, November.
    4. Mejia-Dorantes, Lucia & Paez, Antonio & Vassallo, Jose Manuel, 2012. "Transportation infrastructure impacts on firm location: the effect of a new metro line in the suburbs of Madrid," Journal of Transport Geography, Elsevier, vol. 22(C), pages 236-250.
    5. Emilia Simeonova & Janet Currie & Peter Nilsson & Reed Walker, 2021. "Congestion Pricing, Air Pollution, and Children’s Health," Journal of Human Resources, University of Wisconsin Press, vol. 56(4), pages 971-996.
    6. Chandra R. Bhat & Rajesh Paleti & Palvinder Singh, 2014. "A Spatial Multivariate Count Model For Firm Location Decisions," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 462-502, June.
    7. Kang, Sanggyun, 2020. "Warehouse location choice: A case study in Los Angeles, CA," Journal of Transport Geography, Elsevier, vol. 88(C).
    8. Hong, Junjie, 2007. "Transport and the location of foreign logistics firms: The Chinese experience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 597-609, July.
    9. Hurst, Needham B. & West, Sarah E., 2014. "Public transit and urban redevelopment: The effect of light rail transit on land use in Minneapolis, Minnesota," Regional Science and Urban Economics, Elsevier, vol. 46(C), pages 57-72.
    10. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, January.
    11. Mayer, Thierry & Trevien, Corentin, 2017. "The impact of urban public transportation evidence from the Paris region," Journal of Urban Economics, Elsevier, vol. 102(C), pages 1-21.
    12. Yena Song & Keumsook Lee & William Anderson & T. Lakshmanan, 2012. "Industrial agglomeration and transport accessibility in metropolitan Seoul," Journal of Geographical Systems, Springer, vol. 14(3), pages 299-318, July.
    13. Admasu Shiferaw & M�ns S�derbom & Eyerusalem Siba & Getnet Alemu, 2015. "Road Infrastructure and Enterprise Dynamics in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1541-1558, November.
    14. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    15. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    16. Giuliano, Genevieve & Small, Kenneth A., 1991. "Subcenters in the Los Angeles region," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 163-182, July.
    17. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    18. Mayer, Thierry & Trevien, Corentin, 2017. "The impact of urban public transportation evidence from the Paris region," Journal of Urban Economics, Elsevier, vol. 102(C), pages 1-21.
    19. repec:hal:spmain:info:hdl:2441/6d427am2i18m5a5elpijpm1e8l is not listed on IDEAS
    20. Edward L. Glaeser & Janet E. Kohlhase, 2004. "Cities, regions and the decline of transport costs," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 197-228, Springer.
    21. Adelheid Holl, 2004. "Transport Infrastructure, Agglomeration Economies, and Firm Birth: Empirical Evidence from Portugal," Journal of Regional Science, Wiley Blackwell, vol. 44(4), pages 693-712, November.
    22. Henderson, J. Vernon & Ono, Yukako, 2008. "Where do manufacturing firms locate their headquarters?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 431-450, March.
    23. Poh-Kam Wong & Zi-Lin He, 2002. "The Impacts of Knowledge Interaction with Manufacturing Clients on KIBS Firms Innovation Behaviour," WIDER Working Paper Series DP2002-69, World Institute for Development Economic Research (UNU-WIDER).
    24. Baum-Snow, Nathaniel, 2007. "Suburbanization and transportation in the monocentric model," Journal of Urban Economics, Elsevier, vol. 62(3), pages 405-423, November.
    25. Haining Jiang & Wei Xu & Wenzhong Zhang, 2018. "Transportation Accessibility and Location Choice of Japanese-Funded Electronic Information Manufacturing Firms in Shanghai," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
    26. Holl, Adelheid, 2004. "Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 341-363, May.
    27. Kevin Credit, 2019. "Transitive properties: a spatial econometric analysis of new business creation around transit," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(1), pages 26-52, January.
    28. Ángel Alañón-Pardo & Josep-Maria Arauzo-Carod, 2013. "Agglomeration, accessibility and industrial location: Evidence from Spain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(3-4), pages 135-173, April.
    29. Cletus C. Coughlin & Eran Segev, 2000. "Location Determinants of New Foreign‐Owned Manufacturing Plants," Journal of Regional Science, Wiley Blackwell, vol. 40(2), pages 323-351, May.
    30. J F McDonald & D P McMillen, 1990. "Employment Subcenters and Land Values in a Polycentric Urban Area: The Case of Chicago," Environment and Planning A, , vol. 22(12), pages 1561-1574, December.
    31. Daniel Chatman & Robert Noland, 2011. "Do Public Transport Improvements Increase Agglomeration Economies? A Review of Literature and an Agenda for Research," Transport Reviews, Taylor & Francis Journals, vol. 31(6), pages 725-742.
    32. Marco Percoco, 2016. "Highways, local economic structure and urban development," Journal of Economic Geography, Oxford University Press, vol. 16(5), pages 1035-1054.
    33. Mariano Kulish & Anthony Richards & Christian Gillitzer, 2012. "Urban Structure and Housing Prices: Some Evidence from Australian Cities," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 303-322, September.
    34. Adelheid Holl, 2004. "Start-ups and relocations: Manufacturing plant location in Portugal," Economics of Governance, Springer, vol. 83(4), pages 649-668, October.
    35. Mohammad, Sara I. & Graham, Daniel J. & Melo, Patricia C. & Anderson, Richard J., 2013. "A meta-analysis of the impact of rail projects on land and property values," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 158-170.
    36. van Huizen, Thomas & Plantenga, Janneke, 2018. "Do children benefit from universal early childhood education and care? A meta-analysis of evidence from natural experiments," Economics of Education Review, Elsevier, vol. 66(C), pages 206-222.
    37. Adelheid Holl & Ilaria Mariotti, 2018. "The Geography of Logistics Firm Location: The Role of Accessibility," Networks and Spatial Economics, Springer, vol. 18(2), pages 337-361, June.
    38. Susan M. Hailpern & Paul F. Visintainer, 2003. "Odds ratios and logistic regression: further examples of their use and interpretation," Stata Journal, StataCorp LP, vol. 3(3), pages 213-225, September.
    39. Gingerich, Kevin & Maoh, Hanna, 2019. "The role of airport proximity on warehouse location and associated truck trips: Evidence from Toronto, Ontario," Journal of Transport Geography, Elsevier, vol. 74(C), pages 97-109.
    40. Miguel Gómez‐Antonio & Stuart Sweeney, 2018. "Firm location, interaction, and local characteristics: A case study for Madrid's electronics sector," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 663-685, August.
    41. Hong, Junjie & CHIN, Anthony T.H., 2007. "Modeling the location choices of foreign investments in Chinese logistics industry," China Economic Review, Elsevier, vol. 18(4), pages 425-437.
    42. Kangmin Wu & Yang Wang & Yuyao Ye & Hongou Zhang & Guangqing Huang, 2019. "Relationship Between the Built Environment and the Location Choice of High-Tech Firms: Evidence from the Pearl River Delta," Sustainability, MDPI, vol. 11(13), pages 1-21, July.
    43. Verhetsel, Ann & Kessels, Roselinde & Goos, Peter & Zijlstra, Toon & Blomme, Nele & Cant, Jeroen, 2015. "Location of logistics companies: a stated preference study to disentangle the impact of accessibility," Journal of Transport Geography, Elsevier, vol. 42(C), pages 110-121.
    44. Matas, Anna & Raymond, Josep Lluis & Roig, José Luis, 2020. "Evaluating the impacts of HSR stations on the creation of firms," Transport Policy, Elsevier, vol. 99(C), pages 396-404.
    45. Leitham, Scott & McQuaid, Ronald W. & D. Nelson, John, 2000. "The influence of transport on industrial location choice: a stated preference experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(7), pages 515-535, September.
    46. Kim, Hyungtai & Ahn, Sanghoon & Ulfarsson, Gudmundur F., 2018. "Transportation infrastructure investment and the location of new manufacturing around South Korea's West Coast Expressway," Transport Policy, Elsevier, vol. 66(C), pages 146-154.
    47. Horváthová, Eva, 2010. "Does environmental performance affect financial performance? A meta-analysis," Ecological Economics, Elsevier, vol. 70(1), pages 52-59, November.
    48. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
    49. Nan Zhong & Jing Cao & Yuzhu Wang, 2017. "Traffic Congestion, Ambient Air Pollution, and Health: Evidence from Driving Restrictions in Beijing," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(3), pages 821-856.
    50. Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2007. "The Impact of Railway Stations on Residential and Commercial Property Value: A Meta-analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 35(2), pages 161-180, August.
    51. Kang, Sung Jin & Lee, Hong Shik, 2007. "The determinants of location choice of South Korean FDI in China," Japan and the World Economy, Elsevier, vol. 19(4), pages 441-460, December.
    52. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    53. Henri L.F. Groot & Jacques Poot & Martijn J. Smit, 2016. "Which Agglomeration Externalities Matter Most And Why?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 756-782, September.
    54. Iseki, Hiroyuki & Jones, Robert P., 2018. "Analysis of firm location and relocation in relation to Maryland and Washington, DC metro rail stations," Research in Transportation Economics, Elsevier, vol. 67(C), pages 29-43.
    55. Nilsson, Isabelle M. & Smirnov, Oleg A., 2016. "Measuring the effect of transportation infrastructure on retail firm co-location patterns," Journal of Transport Geography, Elsevier, vol. 51(C), pages 110-118.
    56. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 775-805.
    57. Melo, Patricia C. & Graham, Daniel J. & Noland, Robert B., 2009. "A meta-analysis of estimates of urban agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 332-342, May.
    58. Li, Jianyi & Huang, Hao, 2020. "Effects of transit-oriented development (TOD) on housing prices: A case study in Wuhan, China," Research in Transportation Economics, Elsevier, vol. 80(C).
    59. Christophe Beckerich & Sylvie Benoit & Marie Delaplace, 2019. "Are the reasons for companies to locate around central versus peripheral high-speed rail stations different? The cases of Reims central station and Champagne-Ardenne station," European Planning Studies, Taylor & Francis Journals, vol. 27(3), pages 574-594, March.
    60. Nalin Kumar Ramaul & Pinki Ramaul, 2016. "Determinants of Industrial Location Choice in India: A Polychoric Principal Component Analysis Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(1), pages 29-56, June.
    61. Junjie Hong, 2007. "Location Determinants and Patterns of Foreign Logistics Services in Shanghai, China," The Service Industries Journal, Taylor & Francis Journals, vol. 27(4), pages 339-354, June.
    62. Ejaz Ghani & Arti Grover Goswami & William R. Kerr, 2016. "Highway to Success: The Impact of the Golden Quadrilateral Project for the Location and Performance of Indian Manufacturing," Economic Journal, Royal Economic Society, vol. 126(591), pages 317-357, March.
    63. Kevin Credit, 2018. "Transit-oriented economic development: The impact of light rail on new business starts in the Phoenix, AZ Region, USA," Urban Studies, Urban Studies Journal Limited, vol. 55(13), pages 2838-2862, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Champagne, Marie-Pier & Dubé, Jean & Barla, Philippe, 2022. "Build it and they will come: How does a new public transit station influence building construction?," Journal of Transport Geography, Elsevier, vol. 100(C).
    2. Bruno de Borger & Ismir Mulalic & Jan Rouwendal, 2019. "Productivity effects of an exogenous improvement in transport infrastructure: accessibility and the Great Belt Bridge," Tinbergen Institute Discussion Papers 19-065/VIII, Tinbergen Institute.
    3. Bruno de Borger & Ismir Mulalic & Jan Rouwendal, 2019. "Productivity effects of an exogenous improvement in transport infrastructure: accessibility and the Great Belt Bridge," Tinbergen Institute Discussion Papers 19-065/VIII, Tinbergen Institute.
    4. Yu, Haitao & Jiao, Junfeng & Houston, Eric & Peng, Zhong-Ren, 2018. "Evaluating the relationship between rail transit and industrial agglomeration: An observation from the Dallas-fort worth region, TX," Journal of Transport Geography, Elsevier, vol. 67(C), pages 33-52.
    5. Mayer, Thierry & Trevien, Corentin, 2017. "The impact of urban public transportation evidence from the Paris region," Journal of Urban Economics, Elsevier, vol. 102(C), pages 1-21.
    6. Gibbons, Stephen & Lyytikäinen, Teemu & Overman, Henry G. & Sanchis-Guarner, Rosa, 2019. "New road infrastructure: The effects on firms," Journal of Urban Economics, Elsevier, vol. 110(C), pages 35-50.
    7. Haining Jiang & Wei Xu & Wenzhong Zhang, 2018. "Transportation Accessibility and Location Choice of Japanese-Funded Electronic Information Manufacturing Firms in Shanghai," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
    8. Verhetsel, Ann & Kessels, Roselinde & Goos, Peter & Zijlstra, Toon & Blomme, Nele & Cant, Jeroen, 2015. "Location of logistics companies: a stated preference study to disentangle the impact of accessibility," Journal of Transport Geography, Elsevier, vol. 42(C), pages 110-121.
    9. Holl, Adelheid, 2016. "Highways and productivity in manufacturing firms," Journal of Urban Economics, Elsevier, vol. 93(C), pages 131-151.
    10. Adelheid Holl & Ilaria Mariotti, 2018. "The Geography of Logistics Firm Location: The Role of Accessibility," Networks and Spatial Economics, Springer, vol. 18(2), pages 337-361, June.
    11. Garcia-López, Miquel-Àngel & Hémet, Camille & Viladecans-Marsal, Elisabet, 2017. "Next train to the polycentric city: The effect of railroads on subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 50-63.
    12. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    13. Claudia N. Berg & Uwe Deichmann & Yishen Liu & Harris Selod, 2017. "Transport Policies and Development," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 465-480, April.
    14. repec:hal:spmain:info:hdl:2441/6d427am2i18m5a5elpijpm1e8l is not listed on IDEAS
    15. Sun, Yu & Cui, Yin, 2018. "Evaluating the coordinated development of economic, social and environmental benefits of urban public transportation infrastructure: Case study of four Chinese autonomous municipalities," Transport Policy, Elsevier, vol. 66(C), pages 116-126.
    16. Mayer, Thierry & Trevien, Corentin, 2017. "The impact of urban public transportation evidence from the Paris region," Journal of Urban Economics, Elsevier, vol. 102(C), pages 1-21.
    17. Ciani, Emanuele & de Blasio, Guido & Poy, Samuele, 2022. "A freeway to prosperity? Evidence from Calabria, South of Italy," Economics of Transportation, Elsevier, vol. 29(C).
    18. Padeiro, Miguel, 2013. "Transport infrastructures and employment growth in the Paris metropolitan margins," Journal of Transport Geography, Elsevier, vol. 31(C), pages 44-53.
    19. Elina Sukaryavichute & Elizabeth Delmelle & Colleen Hammelman, 2021. "Opportunities and challenges for small businesses in new transit neighborhoods: Understanding impacts through in‐depth interviews," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1025-1041, June.
    20. Ahmed, Usman & Hawkins, Jason & Roorda, Matthew J., 2022. "Establishment location choice model considering intra-firm interactions," Journal of Transport Geography, Elsevier, vol. 102(C).
    21. Josep‐Maria Arauzo‐Carod, 2008. "Industrial Location At A Local Level: Comments On The Territorial Level Of The Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 193-208, April.

    More about this item

    Keywords

    Transportation economic; Transport infrastructure; Location decision; Firms' decision; Land use patterns; Meta-analysis;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:131:y:2023:i:c:p:139-155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.