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Highways and Globalization

Author

Listed:
  • Taylor Jaworski
  • Carl Kitchens
  • Sergey Nigai

Abstract

This paper quantifies the value of US highways. We develop a multisector general equilibrium model with many locations in the United States (i.e., counties) and many countries. In the model, producers choose shipping routes subject to domestic and international trade costs, endogenous congestion, and port efficiency at international transshipment points. Applying the model, we find that removing the Interstate Highway System reduces real GDP by $421-$578 billion. The results highlight the gains from intersectoral and international trade as well as the role of domestic transportation infrastructure in shaping regional comparative advantage.

Suggested Citation

  • Taylor Jaworski & Carl Kitchens & Sergey Nigai, 2020. "Highways and Globalization," NBER Working Papers 27938, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27938
    Note: DAE ITI
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    File URL: http://www.nber.org/papers/w27938.pdf
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    Other versions of this item:

    • Taylor Jaworski & Carl Kitchens & Sergey Nigai, 2023. "Highways And Globalization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(4), pages 1615-1648, November.

    Citations

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    Cited by:

    1. Cucu, Florin, 2025. "Roads, internal migration and the spatial sorting of U.S. high-skill workers," Journal of Urban Economics, Elsevier, vol. 146(C).
    2. Meng, Xuechen & Li, Jianfeng & Zhou, Xiaoying & Yao, Xiaoyang, 2024. "Transportation infrastructure, market access, and firms’ export competition: Evidence from China," Finance Research Letters, Elsevier, vol. 61(C).
    3. Ignatov, Augustin, 2024. "European highway networks, transportation costs, and regional income," Regional Science and Urban Economics, Elsevier, vol. 104(C).
    4. Calamunci, Francesca & Lonsky, Jakub, 2022. "Highway to Hell? Interstate Highway System and Crime," IZA Discussion Papers 15800, Institute of Labor Economics (IZA).
    5. Karsten Mau & Mingzhi (Jimmy) Xu & Yawen Zheng, 2025. "International Transport Infrastructure and Regional Economic Development," CESifo Working Paper Series 12027, CESifo.
    6. Nehiba, Cody & Tyndall, Justin, 2023. "Highways and pedestrian deaths in US neighborhoods," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    7. Brian C. Fujiy, 2024. "The Geography of Inventors and Local Knowledge Spillovers in R&D," Working Papers 24-59, Center for Economic Studies, U.S. Census Bureau.
    8. Mo, Taejun & Dall’erba, Sandy, 2025. "Uncovering the Key Bilateral Trade Linkages in the U.S. Domestic Food Supply Chain through Disruption Simulations," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361042, Agricultural and Applied Economics Association.
    9. Klein, Alexander & Barde, Sylvain, 2021. "Transportation Costs in the Age of Highways: Evidence from United States 1955-2010," CEPR Discussion Papers 16734, C.E.P.R. Discussion Papers.

    More about this item

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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