IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v93y2022ics0166046221001174.html
   My bibliography  Save this article

Metro infrastructure and metropolitan attractiveness

Author

Listed:
  • Bono, Pierre-Henri
  • David, Quentin
  • Desbordes, Rodolphe
  • Py, Loriane

Abstract

The aim of this paper is to investigate whether cities can improve their international attractiveness by investing in their public transport infrastructure. For this purpose, we examine the influence of a metro shock on the number of greenfield foreign direct investment (FDI) projects received by a city during the period 2003–2014. We find that cities which have invested in expanding their metro network have attracted, on average, more FDI than comparable cities which have not improved their urban transport infrastructure.

Suggested Citation

  • Bono, Pierre-Henri & David, Quentin & Desbordes, Rodolphe & Py, Loriane, 2022. "Metro infrastructure and metropolitan attractiveness," Regional Science and Urban Economics, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:regeco:v:93:y:2022:i:c:s0166046221001174
    DOI: 10.1016/j.regsciurbeco.2021.103757
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166046221001174
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.regsciurbeco.2021.103757?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Wooldridge, Jeffrey M., 1999. "Distribution-free estimation of some nonlinear panel data models," Journal of Econometrics, Elsevier, vol. 90(1), pages 77-97, May.
    2. Cameron,A. Colin & Trivedi,Pravin K., 2013. "Regression Analysis of Count Data," Cambridge Books, Cambridge University Press, number 9781107667273.
    3. Dave Donaldson, 2018. "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure," American Economic Review, American Economic Association, vol. 108(4-5), pages 899-934, April.
    4. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Firms in the European Union," Post-Print hal-00267438, HAL.
    5. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8o118937 is not listed on IDEAS
    6. Crozet, Matthieu & Mayer, Thierry & Mucchielli, Jean-Louis, 2004. "How do firms agglomerate? A study of FDI in France," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 27-54, January.
    7. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g8o118937 is not listed on IDEAS
    8. Desbordes, Rodolphe & Wei, Shang-Jin, 2017. "The effects of financial development on foreign direct investment," Journal of Development Economics, Elsevier, vol. 127(C), pages 153-168.
    9. Strauss-Kahn, Vanessa & Vives, Xavier, 2009. "Why and where do headquarters move?," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 168-186, March.
    10. Davis, James C. & Henderson, J. Vernon, 2008. "The agglomeration of headquarters," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 445-460, September.
    11. Bruce A. Blonigen & Jeremy Piger, 2019. "Determinants of Foreign Direct Investment," World Scientific Book Chapters, in: Foreign Direct Investment, chapter 1, pages 3-54, World Scientific Publishing Co. Pte. Ltd..
    12. Nicolas Gendron-Carrier & Marco Gonzalez-Navarro & Stefano Polloni & Matthew A. Turner, 2022. "Subways and Urban Air Pollution," American Economic Journal: Applied Economics, American Economic Association, vol. 14(1), pages 164-196, January.
    13. Germà Bel & Xavier Fageda, 2008. "Getting there fast: globalization, intercontinental flights and location of headquarters," Journal of Economic Geography, Oxford University Press, vol. 8(4), pages 471-495, July.
    14. Melo, Patricia C. & Graham, Daniel J. & Brage-Ardao, Ruben, 2013. "The productivity of transport infrastructure investment: A meta-analysis of empirical evidence," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 695-706.
    15. 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.
    16. Xavier Fageda, 2017. "International Air Travel And Fdi Flows: Evidence From Barcelona," Journal of Regional Science, Wiley Blackwell, vol. 57(5), pages 858-883, November.
    17. 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.
    18. Robert G. King & Julia K. Thomas, 2006. "Partial Adjustment Without Apology," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 779-809, August.
    19. Gilles Duranton & Matthew A. Turner, 2011. "The Fundamental Law of Road Congestion: Evidence from US Cities," American Economic Review, American Economic Association, vol. 101(6), pages 2616-2652, October.
    20. Basile, Roberto & Castellani, Davide & Zanfei, Antonello, 2008. "Location choices of multinational firms in Europe: The role of EU cohesion policy," Journal of International Economics, Elsevier, vol. 74(2), pages 328-340, March.
    21. Duranton, Gilles & Puga, Diego, 2005. "From sectoral to functional urban specialisation," Journal of Urban Economics, Elsevier, vol. 57(2), pages 343-370, March.
    22. Daniel G. Chatman & Robert B. Noland, 2014. "Transit Service, Physical Agglomeration and Productivity in US Metropolitan Areas," Urban Studies, Urban Studies Journal Limited, vol. 51(5), pages 917-937, April.
    23. Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2004. "Industrial Location Modeling: Extending the Random Utility Framework," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 1-20, February.
    24. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    25. Gilles Duranton & Matthew A. Turner, 2012. "Urban Growth and Transportation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(4), pages 1407-1440.
    26. Baum-Snow, Nathaniel & Kahn, Matthew E., 2000. "The effects of new public projects to expand urban rail transit," Journal of Public Economics, Elsevier, vol. 77(2), pages 241-263, August.
    27. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    28. Gonzalez-Navarro, Marco & Turner, Matthew A., 2018. "Subways and urban growth: Evidence from earth," Journal of Urban Economics, Elsevier, vol. 108(C), pages 85-106.
    29. Tanja Buch & Silke Hamann & Annekatrin Niebuhr & Anja Rossen, 2014. "What Makes Cities Attractive? The Determinants of Urban Labour Migration in Germany," Urban Studies, Urban Studies Journal Limited, vol. 51(9), pages 1960-1978, July.
    30. repec:hal:spmain:info:hdl:2441/6d427am2i18m5a5elpijpm1e8l is not listed on IDEAS
    31. Fabrice Defever, 2006. "Functional fragmentation and the location of multinational firms in the enlarged Europe," Post-Print halshs-00118808, HAL.
    32. Rainer Winkelmann, 2008. "Econometric Analysis of Count Data," Springer Books, Springer, edition 0, number 978-3-540-78389-3, December.
    33. repec:hal:spmain:info:hdl:2441/10192 is not listed on IDEAS
    34. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
    35. Defever, Fabrice, 2006. "Functional fragmentation and the location of multinational firms in the enlarged Europe," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 658-677, September.
    36. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Investment in the European Union," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 959-972, November.
    37. Beata S. Javorcik, 2015. "Does FDI Bring Good Jobs to Host Countries?," The World Bank Research Observer, World Bank, vol. 30(1), pages 74-94.
    38. 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.
    39. Kiyoyasu Tanaka, 2019. "Do international flights promote FDI? The role of face‐to‐face communication," Review of International Economics, Wiley Blackwell, vol. 27(5), pages 1609-1632, November.
    40. Crozet, Matthieu & Mayer, Thierry & Mucchielli, Jean-Louis, 2004. "How do firms agglomerate? A study of FDI in France," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 27-54, January.
    41. repec:hal:wpspec:info:hdl:2441/10192 is not listed on IDEAS
    42. Guimarães, Paulo, 2008. "The fixed effects negative binomial model revisited," Economics Letters, Elsevier, vol. 99(1), pages 63-66, April.
    43. Ho, Daniel E. & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2007. "Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference," Political Analysis, Cambridge University Press, vol. 15(3), pages 199-236, July.
    44. King, Gary & Zeng, Langche, 2006. "The Dangers of Extreme Counterfactuals," Political Analysis, Cambridge University Press, vol. 14(2), pages 131-159, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David, Quentin & Kilani, Moez, 2022. "Transport policies in polycentric cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 101-117.

    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. Pierre-Henri Bono & Quentin Max David & Rodolphe Desbordes & Loriane Py, 2022. "Metro infrastructure and metropolitan attractiveness," ULB Institutional Repository 2013/355380, ULB -- Universite Libre de Bruxelles.
    2. Corentin Trevien & Thierry Mayer, 2013. "Urban Public Transportation and Firm Location Choice Evidence from the Regional Express Rail of Paris Metropolitan area," ERSA conference papers ersa13p566, European Regional Science Association.
    3. Marie-Line Duboz & Nathalie Kroichvili & Julie Le Gallo, 2016. "Do Foreign Investors’ Location Determinants in Service Functions Differ According to Sectors? An Empirical Analysis of EU for 1997 to 2011," International Regional Science Review, , vol. 39(4), pages 417-456, October.
    4. Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2012. "Innovation Drivers, Value Chains and the Geography of Multinational Firms in European Regions," LEQS – LSE 'Europe in Question' Discussion Paper Series 53, European Institute, LSE.
    5. Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2015. "Economic Institutions and the Location Strategies of European Multinationals in their Geographical Neighbourhood," LEQS – LSE 'Europe in Question' Discussion Paper Series 97, European Institute, LSE.
    6. Marie-Line Duboz & Nathalie Kroichvili & Julie Le Gallo, 2019. "What matters most for FDI attraction in services: country or region performance? An empirical analysis of EU for 1997–2012," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 601-638, December.
    7. Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2014. "Innovation drivers, value chains and the geography of multinational corporations in Europe," Journal of Economic Geography, Oxford University Press, vol. 14(6), pages 1053-1086.
    8. Mina Sami & Tarek Ibrahim Eldomiaty, 2020. "Modeling dynamic location expansion of multinational firms in France," Empirical Economics, Springer, vol. 59(6), pages 3033-3061, December.
    9. Siedschlag, Iulia & Yan, Weijie, 2021. "Enhancing the attractiveness of the all-island economy to high-value sectors," Research Series, Economic and Social Research Institute (ESRI), number RS133.
    10. Filip De Beule & Dieter Somers & Haiyan Zhang, 2018. "Who Follows Whom? A Location Study of Chinese Private and State-Owned Companies in the European Union," Management International Review, Springer, vol. 58(1), pages 43-84, February.
    11. Qiao Wang & Xiuyan Liu & Fan Zhang & Tao Hu, 2022. "Subways and the Diffusion of Knowledge: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 60-99, July.
    12. Peter Egger & Doina Radulescu & Nora Strecker, 2013. "Effective labor taxation and the international location of headquarters," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(4), pages 631-652, August.
    13. Jonathan Jones, 2017. "Agglomeration economies and the location of foreign direct investment: A meta-analysis," Journal of Regional Science, Wiley Blackwell, vol. 57(5), pages 731-757, November.
    14. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    15. Junsong Wang & Yehua Dennis Wei & Bingquan Lin, 2021. "Functional division and location choices of Chinese outward FDI: The case of ICT firms," Environment and Planning A, , vol. 53(5), pages 937-957, August.
    16. Alexandre Gazaniol, 2012. "The location choices of multinational firms : the role of internationalization experience and group affiliation," Working Papers DT/2012/02, DIAL (Développement, Institutions et Mondialisation).
    17. Jonas Kleineick & Andrea Ascani & Martijn Smit, 2020. "Multinational investments across Europe: a multilevel analysis," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 40(1), pages 67-105, April.
    18. Alexandre Gazaniol, 2015. "The Location Choices of Multinational Firms: The Role of Internationalisation Experience and Group Affiliation," The World Economy, Wiley Blackwell, vol. 38(8), pages 1246-1277, August.
    19. Luigi Benfratello & Davide Castellani & Anna D'Ambrosio, 2024. "Migration and the location of MNE activities: Evidence from Italian provinces," Journal of Regional Science, Wiley Blackwell, vol. 64(2), pages 428-461, March.
    20. Rubini, Lauretta & Pollio, Chiara & Spigarelli, Francesca & Lv, Ping, 2021. "Regional social context and FDI. An empirical investigation on Chinese acquisitions in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 402-415.

    More about this item

    Keywords

    City attractiveness; Foreign direct investment; Metro; Urban infras-tructure;
    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)
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    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:regeco:v:93:y:2022:i:c:s0166046221001174. 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/locate/regec .

    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.