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Road Infrastructure and Regional Development: An Evidence From Croatia

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Author Info
Valerija Botric ()
Jelena Sisinacki ()
Lorena Skuflic ()

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Abstract

It is a common belief that investment in transport infrastructure has a positive impact on a regional development. Theories suggest that interaction between infrastructure and regional development can be classified as: 1. theory which suggests that infrastructure follows regional development, 2. theory that underlines importance of infrastructure development as an inductor of the regional development and 3. balanced development which equally emphasizes the role of infrastructure and economic growth in the region. While it is quite easy to determine direct benefits in term of reduced travel time, reduced vehicle operating costs as well as increased transport safety, contribution to the society (regional) development as a whole i.e. evaluation methods, are subject to certain discussions. Through its development strategies, the Republic of Croatia is supporting thesis that infrastructure network is prerequisite to the regional development. In that context, intensive investments in the highway programme are elaborated with the expected positive effects on the regional development. Building of the so called “Istrian Yâ€, highway that shall improve transport connections within the County of Istria is selected to determine weather or not there is a justification for such an belief. Therefore, in this paper we aim to analyze the impact of the “Istrian Y†on the selected indicators of the County development. We expect that positive effects of the infrastructure development will be proven by the selected indicators, which confirms that infrastructure can be considered as an inductor of the regional development in Croatian case.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa06p88.

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Date of creation: Aug 2006
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Handle: RePEc:wiw:wiwrsa:ersa06p88

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  1. Bruinsma, F., 1995. "The impact of new infrastructure on the spatial patterns of economic activities," Serie Research Memoranda 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
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