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The politico-economic determinants and productivity effects of regional transport investment in Europe

Author

Listed:
  • Kemmerling , Achim

    () (Jacobs University Bremen)

  • Stephan, Andreas

    () (Jonkoping International Business School)

Abstract

We study the determinants and productivity effects of regional transportation infrastructure investment in France, Germany, Italy, and Spain. We estimate productivity effects with regional production functions for each country controlling for the potential endogeneity of public infrastructure investment. In analyzing the determinants of public infrastructure investment two broad categories are considered: First, the normative principles such as efficiency, equity, and redistribution; and second, political factors such as electoral competition and electoral rents. The evidence shows that road infrastructure positively contributes to regional production. As to the determinants, efficiency and redistribution are consistently found to be the dominant norms while equity considerations appear to be less important. However, we find remarkable differences across countries regarding the political determinants. Which political factors matter for infrastructure investment is related to the different political systems of the various countries.

Suggested Citation

  • Kemmerling , Achim & Stephan, Andreas, 2008. "The politico-economic determinants and productivity effects of regional transport investment in Europe," EIB Papers 7/2008, European Investment Bank, Economics Department.
  • Handle: RePEc:ris:eibpap:2008_007
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Free access to our Article on the Comparative Political Economy of Public Investment
      by ecprpoliticaleconomy in Polidigwerkschdaeddle on 2015-02-03 07:03:26

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    Cited by:

    1. Davide Luca & Andrés Rodríguez-Pose, 2014. "Electoral politics and regional development: assessing the geographical allocation of public investment in Turkey," Working Papers. Collection A: Public economics, governance and decentralization 1402, Universidade de Vigo, GEN - Governance and Economics research Network.
    2. Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2012. "Public investment and regional growth and convergence: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 543-568, August.
    3. 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.
    4. Gilberto Seravalli, 2016. "Dimensioni e crescita delle città in Europa: l’incertezza danneggia soprattutto le città medie," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2016(2), pages 91-108.
    5. Dettmer, Bianka & Sauer, Thomas, 2016. "Implementation of European cohesion policy at the sub-national level: Evidence from beneficiary data in Eastern Germany," Jena Contributions to Economic Research 2016/1, University of Applied Sciences Jena, Department of Business Administration.
    6. Davide Luca, 2013. "Regional development goals and distributive politics in the allocation of Turkey's central investments: socioeconomic criteria, parties and legislators' personal networks," ERSA conference papers ersa13p981, European Regional Science Association.
    7. repec:eee:ecotra:v:13:y:2018:i:c:p:27-35 is not listed on IDEAS
    8. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    9. Luca, Davide, 2016. "Votes and Regional Economic Growth: Evidence from Turkey," World Development, Elsevier, vol. 78(C), pages 477-495.
    10. Bodenstein, Thilo and Achim Kemmerling, 2012. "Ripples in a rising tide: Why some EU regions receive more structural funds than others," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 16, January.
    11. Cheteni, Priviledge, 2013. "Transport Infrastructure Investment and Transport Sector Productivity on Economic Growth in South Africa (1975-2011)," MPRA Paper 53175, University Library of Munich, Germany, revised 18 Jul 2013.
    12. Sandberg Hanssen, Thor-Erik & Jørgensen, Finn, 2015. "Transportation policy and road investments," Transport Policy, Elsevier, vol. 40(C), pages 49-57.
    13. Adelheid Holl, 2011. "Factors influencing the location of new motorways: the large scale motorway building in Spain," Working Papers 1105, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    14. Celbis, M.G. & Crombrugghe, D. de & Muysken, J., 2014. "Public investment and regional politics: The case of Turkey," MERIT Working Papers 020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    transport infrastructure; regional growth; political economy;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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