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How growth and location are sensitive to transport and telecommunication infrastructures ?

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  • Stéphane Riou

Abstract

This paper is an extension of the new economic geography and growth model of Martin (1999) which proposes an interesting framework to analyze the effects of the european regional policy. We introduce imperfect interregional knowledge spillovers in this framework which are diffused by two infrastructures : transport and telecommunication infrastructures. If an investment in transport infrastructures may be at the origin of a centrifugal effect through non market interactions, we show that only a policy improving telecommunication can reduce regional inequalities and attain higher aggregate growth rate.
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  • Stéphane Riou, 2003. "How growth and location are sensitive to transport and telecommunication infrastructures ?," Recherches économiques de Louvain, De Boeck Université, vol. 69(3), pages 241-265.
    • Handle: RePEc:cai:reldbu:rel_693_0241
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    1. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
    2. Philippe Martin, 2000. "A quoi servent les politiques regionales europeennes ?," Economie Internationale, CEPII research center, issue 81, pages 3-20.
    3. Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," Post-Print hal-03416388, HAL.
    4. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 2021. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 2, pages 25-57, World Scientific Publishing Co. Pte. Ltd..
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    7. Philippe Martin & Gianmarco I.P. Ottaviano, 2021. "Growing locations: Industry location in a model of endogenous growth," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 1, pages 3-24, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Benjamin Montmartin & Nadine Massard, 2015. "Is Financial Support For Private R&D Always Justified? A Discussion Based On The Literature On Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 479-505, July.
    2. Gaurav Bhattacharya, 2019. "Location decisions of industries in the presence of transportation costs and environmental regulations: empirical evidence from India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(1), pages 24-53, June.

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    More about this item

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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