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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
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    Cited by:

    1. Rayaprolu, Hema & Levinson, David, 2024. "Co-evolution of public transport access and ridership," Journal of Transport Geography, Elsevier, vol. 116(C).
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    3. Chakrabarti, Sandip, 2018. "Can highway development promote employment growth in India?," Transport Policy, Elsevier, vol. 69(C), pages 1-9.
    4. Pan, Jiamin & Zhao, Xia & Guo, Weisi & Feng, Yuhao & Liu, Yu & Zhu, Jiangling & Fang, Jingyun, 2024. "Characterizing China's road network development from a spatial entropy perspective," Journal of Transport Geography, Elsevier, vol. 116(C).
    5. Shafique, Muhammad & Azam, Anam & Rafiq, Muhammad & Luo, Xiaowei, 2021. "Investigating the nexus among transport, economic growth and environmental degradation: Evidence from panel ARDL approach," Transport Policy, Elsevier, vol. 109(C), pages 61-71.
    6. Pradhan, Rudra P., 2019. "Investigating the causal relationship between transportation infrastructure, financial penetration and economic growth in G-20 countries," Research in Transportation Economics, Elsevier, vol. 78(C).
    7. Qi, Guanqiu & Shi, Wenming & Lin, Kun-Chin & Yuen, Kum Fai & Xiao, Yi, 2020. "Spatial spillover effects of logistics infrastructure on regional development: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 96-114.
    8. Liu, Tie-Ying, 2019. "Spatial structure convergence of China's transportation system," Research in Transportation Economics, Elsevier, vol. 78(C).
    9. Baiqing Sun & Ramadhan Kauzen, 2023. "The Impact of Port Infrastructure and Economic Growth in Tanzania: Adopting a Structural Equation Modeling Approach," SAGE Open, , vol. 13(1), pages 21582440221, January.
    10. Muhammad Shafique & Anam Azam & Muhammad Rafiq & Xiaowei Luo, 2020. "Evaluating the Relationship between Freight Transport, Economic Prosperity, Urbanization, and CO 2 Emissions: Evidence from Hong Kong, Singapore, and South Korea," Sustainability, MDPI, vol. 12(24), pages 1-14, December.
    11. Saba, Charles Shaaba, 2021. "Convergence and transition paths in transportation: Fresh insights from a club clustering algorithm," Transport Policy, Elsevier, vol. 112(C), pages 80-93.
    12. An, Zihao & Xie, Bo & Liu, Qiyang, 2023. "No street is an Island: Street network morphologies and traffic safety," Transport Policy, Elsevier, vol. 141(C), pages 167-181.
    13. Anyu Chen & Yueran Li & Kunhui Ye & Tianyi Nie & Rui Liu, 2021. "Does Transport Infrastructure Inequality Matter for Economic Growth? Evidence from China," Land, MDPI, vol. 10(8), pages 1-21, August.
    14. Haibing Jiang & David Levinson, 2016. "Accessibility and the Evaluation of Investments on the Beijing Subway," Working Papers 000146, University of Minnesota: Nexus Research Group.
    15. Sanwei He & Shan Yu & Lei Wang, 2021. "The nexus of transport infrastructure and economic output in city-level China: a heterogeneous panel causality analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 113-135, February.
    16. Jiao, Jingjuan & Wang, Jiaoe & Zhang, Fangni & Jin, Fengjun & Liu, Wei, 2020. "Roles of accessibility, connectivity and spatial interdependence in realizing the economic impact of high-speed rail: Evidence from China," Transport Policy, Elsevier, vol. 91(C), pages 1-15.

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    Keywords

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    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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