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Mutual Causality in Road Network Growth and Economic Development

Author

Listed:
  • Michael Iacono
  • David Levinson

    () (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

Abstract

This paper investigates the relationship between the growth of road networks and regional development. We test for mutual causality between the growth of road networks (which are divided functionally into local roads and highways) and changes in county-level population and employment. We employ a panel data set containing observations of road mileage by type for all Minnesota counties over the period 1988 to 2007 to fit a model describing changes in road networks, population and employment. Results indicate that causality runs in both directions between population and local road networks, while no evidence of causality in either direction is found for networks and local employment. We interpret the findings as evidence of a weakening influence of road networks (and transportation more generally) on location, and suggest methods for refining the empirical approach described herein.

Suggested Citation

  • Michael Iacono & David Levinson, 2013. "Mutual Causality in Road Network Growth and Economic Development," Working Papers 000112, University of Minnesota: Nexus Research Group.
  • Handle: RePEc:nex:wpaper:statepanel
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    File URL: http://hdl.handle.net/11299/180063
    File Function: Second version, 2015
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    References listed on IDEAS

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    5. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 775-805.
    6. Jiwattanakulpaisarn, Piyapong & Noland, Robert B. & Graham, Daniel J., 2010. "Causal linkages between highways and sector-level employment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(4), pages 265-280, May.
    7. Cervero, Robert, 1989. "Jobs-Housing Balancing and Regional Mobility," University of California Transportation Center, Working Papers qt7mx3k73h, University of California Transportation Center.
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    9. Steinnes, Donald N., 1977. "Causality and intraurban location," Journal of Urban Economics, Elsevier, vol. 4(1), pages 69-79, January.
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    Cited by:

    1. repec:eee:trapol:v:69:y:2018:i:c:p:1-9 is not listed on IDEAS
    2. Haibing Jiang & David Levinson, 2016. "Accessibility and the Evaluation of Investments on the Beijing Subway," Working Papers 000146, University of Minnesota: Nexus Research Group.

    More about this item

    Keywords

    network expansion; economic evaluation; regional growth; rural development; economic development;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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