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Infrastructure and economic geography: An overview of theory and evidence

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Author Info

  • I.P. Ottaviano, Gianmarco

    ()
    (Universita di Bologna, Dipartimento di Scienze Economiche)

Abstract

This essay provides an overview of the role of infrastructure on economic geography in the light of both theoretical and empirical findings. Two main lessons stand out. First, infrastructural improvements affect the geographical distribution of economic activities. Second, even when localized, infrastructure investment generates externalities that may diffuse quite far across the economy. These two lessons have two far-reaching policy implications. First, effective infrastructure projects require knowledge on their impacts on the spatial distribution of economic activities. These impacts depend crucially on the specific details of the projects and the specific sources of agglomeration economies they affect. Second, regions need to coordinate not only in terms of interregional infrastructure projects but also in terms of intraregional ones if they want to avoid beggar-thyneighbour and self-defeating outcomes.

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Bibliographic Info

Paper provided by European Investment Bank, Economics Department in its series EIB Papers with number 6/2008.

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Length: 28 pages
Date of creation: 18 Jul 2008
Date of revision:
Handle: RePEc:ris:eibpap:2008_006

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Related research

Keywords: agglomeration; infrastructure; regional development; transport networks;

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Cited by:
  1. Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2012. "Public investment and regional growth and convergence: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 543-568, 08.
  2. Giorgio Fazio & Davide Piacentino, 2009. "A spatial multilevel analysis of Italian SMEs Productivity," Working Papers 2009_31, Business School - Economics, University of Glasgow.
  3. Tomasz Brodzicki, 2012. "Augmented Solow Model with Mincerian Education and Transport Infrastructure Externalities," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 6(2), pages 155-170, July.
  4. Francesco Aiello & Fernanda Ricotta, 2014. "Firm Heterogeneity In Productivity Across Europe. What Explains What?," Working Papers 201404, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).

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