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Network infrastructure spillover in private productive sectors: evidence from Spanish high capacity roads

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  • Maria Jesus Delgado
  • Inmaculada Alvarez

Abstract

Interest in public infrastructure research has been a subject of increasing concern to economists and policy-makers. This article aims at analysing the locational impact of the high capacity roads (HCR) on the Spanish private economic activity from 1970 through 1998, given that this is one of main infrastructure-based development strategy undertaken in Spain in this period. In a stochastic frontier production-function framework, we allow for modelling of provincial heterogeneity through the existence of different efficiency levels in the territorial units. Results show HCR spillovers between geographically close provinces and between provinces displaying similar socio-demographic characteristics and government size. To the extent that the magnitude and sign of these impacts differ across sectors a reasonable explanation of the limited impact of HCR on aggregate private production could be made. The presence of a negative spillover effect in the industrial and business service sector suggests that Spanish provinces may have used HCR capital as a competitive tool for attracting factors of production leading to a rearrangement in these economic activities.

Suggested Citation

  • Maria Jesus Delgado & Inmaculada Alvarez, 2007. "Network infrastructure spillover in private productive sectors: evidence from Spanish high capacity roads," Applied Economics, Taylor & Francis Journals, vol. 39(12), pages 1583-1597.
  • Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1583-1597
    DOI: 10.1080/00036840500486557
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    Cited by:

    1. Antonio Alvarez & Carlos Arias & Luis Orea, 2006. "Econometric testing of spatial productivity spillovers from public capital," Hacienda Pública Española, IEF, vol. 178(3), pages 9-21, September.
    2. Miguel Márquez & Julián Ramajo & Geoffrey Hewings, 2010. "Measuring the spillover effects of public capital: a bi-regional structural vector autoregressive analysis," Letters in Spatial and Resource Sciences, Springer, vol. 3(3), pages 111-125, October.
    3. 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).
    4. Anu Tokila & Mika Haapanen, 2012. "Evaluation of Deadweight Spending in Regional Enterprise Financing," Regional Studies, Taylor & Francis Journals, vol. 46(2), pages 185-201, May.
    5. 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.
    6. Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2012. "The Macroeconomic Impact of Infrastructures: A Literature Review and Empirical Analysis on the Case of Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    7. 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.
    8. 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.

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