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Infrastructure and economic geography: An overview of theory and evidence

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  • I.P. Ottaviano, Gianmarco

    () (Universita di Bologna, Dipartimento di Scienze Economiche)

Abstract

This essay provides an overview of the role of infrastructure on economic geography in the light of both theoretical and empirical findings. Two main lessons stand out. First, infrastructural improvements affect the geographical distribution of economic activities. Second, even when localized, infrastructure investment generates externalities that may diffuse quite far across the economy. These two lessons have two far-reaching policy implications. First, effective infrastructure projects require knowledge on their impacts on the spatial distribution of economic activities. These impacts depend crucially on the specific details of the projects and the specific sources of agglomeration economies they affect. Second, regions need to coordinate not only in terms of interregional infrastructure projects but also in terms of intraregional ones if they want to avoid beggar-thyneighbour and self-defeating outcomes.

Suggested Citation

  • I.P. Ottaviano, Gianmarco, 2008. "Infrastructure and economic geography: An overview of theory and evidence," EIB Papers 6/2008, European Investment Bank, Economics Department.
  • Handle: RePEc:ris:eibpap:2008_006
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    Cited by:

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    8. Felice, Giulia, 2016. "Size and composition of public investment, sectoral composition and growth," European Journal of Political Economy, Elsevier, vol. 44(C), pages 136-158.
    9. Zofío, Jose L. & Condeço-Melhorado, Ana M. & Maroto-Sánchez, Andrés & Gutiérrez, Javier, 2014. "Generalized transport costs and index numbers: A geographical analysis of economic and infrastructure fundamentals," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 141-157.
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    11. repec:nbp:nbpbik:v:47:y:2016:i:6:p:463-494 is not listed on IDEAS
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    15. Giulia FELICE, 2009. "Size and composition of public investment, structural change and growth," Departmental Working Papers 2009-28, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 27 Dec 2011.
    16. Tomasz Brodzicki & Dorota Ciolek, 2015. "Territorial capital and Polish regional development. A neoclassical approach," Working Papers 1511, Instytut Rozwoju, Institute for Development.
    17. Yu, Nannan & de Roo, Gert & de Jong, Martin & Storm, Servaas, 2016. "Does the expansion of a motorway network lead to economic agglomeration? Evidence from China," Transport Policy, Elsevier, vol. 45(C), pages 218-227.
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    20. Riccardo Crescenzi & Marco Di Cataldo & Andrés Rodríguez-Pose, 2016. "Government Quality And The Economic Returns Of Transport Infrastructure Investment In European Regions," Journal of Regional Science, Wiley Blackwell, vol. 56(4), pages 555-582, September.
    21. Tomasz Brodzicki, 2012. "Augmented Solow Model with Mincerian Education and Transport Infrastructure Externalities," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 6(2), pages 155-170, July.
    22. Farhang, Shimon, 2014. "Study of the conditions for the development of CBI corridor and examining their validity in the Middle East," MPRA Paper 61485, University Library of Munich, Germany.
    23. Iritié, B. G. Jean Jacques, 2016. "Economic issues of innovation clusters-based industrial policy : a critical overview," EconStor Preprints 142746, ZBW - German National Library of Economics.
    24. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.

    More about this item

    Keywords

    agglomeration; infrastructure; regional development; transport networks;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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