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The politico-economic determinants and productivity effects of regional transport investment in Europe

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  • Kemmerling , Achim

    ()
    (Jacobs University Bremen)

  • Stephan, Andreas

    ()
    (Jonkoping International Business School)

Abstract

We study the determinants and productivity effects of regional transportation infrastructure investment in France, Germany, Italy, and Spain. We estimate productivity effects with regional production functions for each country controlling for the potential endogeneity of public infrastructure investment. In analyzing the determinants of public infrastructure investment two broad categories are considered: First, the normative principles such as efficiency, equity, and redistribution; and second, political factors such as electoral competition and electoral rents. The evidence shows that road infrastructure positively contributes to regional production. As to the determinants, efficiency and redistribution are consistently found to be the dominant norms while equity considerations appear to be less important. However, we find remarkable differences across countries regarding the political determinants. Which political factors matter for infrastructure investment is related to the different political systems of the various countries.

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Bibliographic Info

Paper provided by European Investment Bank, Economics Department in its series EIB Papers with number 7/2008.

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Length: 25 pages
Date of creation: 18 Jul 2008
Date of revision:
Handle: RePEc:ris:eibpap:2008_007

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Keywords: transport infrastructure; regional growth; political economy;

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Cited by:
  1. Cheteni, Priviledge, 2013. "Transport Infrastructure Investment and Transport Sector Productivity on Economic Growth in South Africa (1975-2011)," MPRA Paper 53175, University Library of Munich, Germany, revised 18 Jul 2013.
  2. Andrés Rodríguez-Pose & Marco Di-Cataldo, 2014. "Quality of government and innovative performance in the regions of Europe," Papers in Evolutionary Economic Geography (PEEG) 1406, Utrecht University, Section of Economic Geography, revised Feb 2014.
  3. Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2012. "Public investment and regional growth and convergence: Evidence from Greece," Working Papers 2012-05, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  4. Bodenstein, Thilo and Achim Kemmerling, 2012. "Ripples in a rising tide: Why some EU regions receive more structural funds than others," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 16, 01.

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