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Agglomeration and cross-border infrastructure

  • Puga, Diego

    ()

    (Madrid Institute for Advanced Studies (IMDEA) Social Sciences)

This paper deals with the effects of cross-border transport infrastructure in the presence of agglomeration economies. Cross-border infrastructure is more likely to increase than to decrease inequalities between and within regions, and has not helped regional convergence in Europe. Under-investment due to spillovers, coordination failures, and the inadequacy of networks originally designed for national markets provide a role for supranational institutions. Hub-andspoke networks tend to increase urban primacy while cross-border transport connections tend to reduce it. Improvements in transport and communication allow firms to separate innovation, management and production, increasing efficiency and urban interdependence.

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Paper provided by European Investment Bank, Economics Department in its series EIB Papers with number 9/2008.

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Length: 23 pages
Date of creation: 18 Jul 2008
Date of revision:
Handle: RePEc:ris:eibpap:2008_009
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