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Returns to Local and Transport Infrastructure under Regional Spillovers

Author

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  • Rosina Moreno

    (AQR Research Group, University of Barcelona and Barcelona Science Park, Barcelona, Spain, rmoreno@ub.edu)

  • Enrique López-Bazo

    (AQR Research Group, University of Barcelona and Barcelona Science Park, Barcelona, Spain, elopez@ub.edu)

Abstract

This article pays special attention to the spatial dimension of public capital in regional economic growth. We assume that the effect of infrastructure on productivity depends on the type of public infrastructure in question: that is, local infrastructures enhance economic activity in the area where they are located, whereas transport and communication infrastructure may produce both benefits in the area where they are located and positive or negative spillovers to other regions. We also obtain conclusions on whether the link between growth and public capital depends on the amount of existing public capital stocks. Results for the Spanish provinces during a long time period suggest that the returns to local infrastructure are much greater than the returns to transportation, although in both cases, we observe strong decreasing returns to their accumulation. Finally, negative spillovers across regions in transport capital investments are obtained.

Suggested Citation

  • Rosina Moreno & Enrique López-Bazo, 2007. "Returns to Local and Transport Infrastructure under Regional Spillovers," International Regional Science Review, , vol. 30(1), pages 47-71, January.
  • Handle: RePEc:sae:inrsre:v:30:y:2007:i:1:p:47-71
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    Cited by:

    1. Stephen Gibbons & Teemu Lyytikäinen & Henry Overman & Rosa Sanchis-Guarner, 2012. "New Road Infrastructure: the Effects on Firms," SERC Discussion Papers 0117, Spatial Economics Research Centre, LSE.
    2. Teh, Benny Cheng Guan & Ngu, Ik Tien, 2016. "Perceptions and Practice of Human Security in Malaysia," Working Papers 134, JICA Research Institute.
    3. Justo De Jorge Moreno & Cesar Camison Zorzona & Juan Muro Romero & Leopoldo Laborda Castillo, 2015. "Effects Of Public Capital On Economic Growth And Productivity In Spain During The Period 1980-2007," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(4), pages 67-89, December.
    4. 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, August.
    5. Miguel Gómez-Antonio & Bernard Fingleton, 2012. "Regional productivity variation and the impact of public capital stock: an analysis with spatial interaction, with reference to Spain," Applied Economics, Taylor & Francis Journals, vol. 44(28), pages 3665-3677, October.
    6. Sander Hoogendoorn & Joost van Gemeren & Paul Verstraten & Kees Folmer, 2016. "House prices and accessibility: Evidence from a natural experiment in transport infrastructure," CPB Discussion Paper 322, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Gómez-Antonioa, Miguel & Fingleton, Bernard, 2009. "Analysing the impact of public capital stock using the NEG wage equation: a panel data approach," SIRE Discussion Papers 2009-29, Scottish Institute for Research in Economics (SIRE).
    8. Arbués, Pelayo & Baños, José F. & Mayor, Matías, 2015. "The spatial productivity of transportation infrastructure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 166-177.
    9. Hirte, Georg & Stephan, Andreas, 2014. "Regionale Beschäftigungswirkungen von öffentlichen Investitionen in Straßen- und Schieneninfrastruktur," Discussion Papers 2/2014, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    10. Nicola Pontarollo & Roberto Ricciuti, 2015. "Railways and the Productivity Gap in Italy: Persistence and Divergence after Unification," CESifo Working Paper Series 5438, CESifo Group Munich.
    11. 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.
    12. Kolomak, E., 2011. "Efficiency of Infrastructure Capital in Russia," Journal of the New Economic Association, New Economic Association, issue 10, pages 74-93.
    13. Evgeniya Kolomak, 2011. "Infrastructure Capital in Russia: Effects On Economic Growth," ERSA conference papers ersa10p471, European Regional Science Association.
    14. Fageda, Xavier & Gonzalez-Aregall, Marta, 2017. "Do all transport modes impact on industrial employment? Empirical evidence from the Spanish regions," Transport Policy, Elsevier, vol. 55(C), pages 70-78.
    15. Alonso-Carrera, Jaime & Freire-Serén, María Jesús & Manzano, Baltasar, 2009. "Macroeconomic effects of the regional allocation of public capital formation," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 563-574, September.
    16. Esteban Fernandez-Vazquez, 2011. "Estimating spatial weighting matrices in cross-regressive models by entropy techniques," ERSA conference papers ersa10p503, European Regional Science Association.
    17. repec:eee:retrec:v:63:y:2017:i:c:p:13-26 is not listed on IDEAS
    18. Xavier Fageda & Marta Gonzalez-Aregall, 2014. "“The Spatial effects of transportation on industrial employment ”," IREA Working Papers 201429, University of Barcelona, Research Institute of Applied Economics, revised Nov 2014.
    19. Chiara Del Bo & Massimo Florio & Silvia Vignetti & Emanuela Sirtori, 2011. "Additionality and regional development: are EU Structural Funds complements or substitutes of national Public Finance?," Working Papers 201101, CSIL Centre for Industrial Studies.
    20. Xiushan Jiang & Lei Zhang & Chenfeng Xiong & Ruijun Wang, 2016. "Transportation and Regional Economic Development: Analysis of Spatial Spillovers in China Provincial Regions," Networks and Spatial Economics, Springer, vol. 16(3), pages 769-790, September.
    21. Pellervo Hamalainen, 2009. "Review of literature on the productivity of public capital," Discussion Papers 55, Aboa Centre for Economics.
    22. Mendieta Muñoz, Rodrigo & Pontarollo, Nicola, 2015. "Cantonal Convergence in Ecuador: A Spatial Econometric Perspective," MPRA Paper 68399, University Library of Munich, Germany.

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    Keywords

    public capital; regional growth; spillovers;

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