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Agglomeration and cross-border infrastructure

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Listed author(s):
  • Puga, Diego

    ()

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

Abstract

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
Handle: RePEc:ris:eibpap:2008_009
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Keywords: transport; cross-border infrastructure; agglomeration; urban specialization;

Other versions of this item:

Find related papers by JEL classification:
  • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
  • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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Cited by:

  1. Anna Matas Prat & Adriana Karina Ruíz Marín & Josep Lluís Raymond Bara, 2016. "How do road infrastructure investments affect the regional economy? Evidence from Spain," Working Papers wpdea1610, Department of Applied Economics at Universitat Autonoma of Barcelona.
  2. 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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