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The Impact of Transport Infrastructure on Productivity in Canada

Author

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  • Paskynel Jacques-Arvisais
  • Simon Lapointe

Abstract

This study examines the relationship between transportation infrastructure and output and productivity in Canada. We estimate different specifications of a static Cobb-Douglas production function (in levels and in differences). The impact of highway infrastructure is mixed. For the 1997-2018 period a higher stock of highways does not translate into higher productivity for the business sector, But from 2009 to 2018, the impact of highways is positive and statistically significant, when we account for province-specific characteristics. The long run elasticity of output with respect to railway lines is statistically significant and quite large (0.27). For this type of infrastructure, then, our results are more conclusive and point to a positive impact of railways on output and productivity.

Suggested Citation

  • Paskynel Jacques-Arvisais & Simon Lapointe, 2022. "The Impact of Transport Infrastructure on Productivity in Canada," CSLS Research Reports 2022-02, Centre for the Study of Living Standards.
    • Handle: RePEc:sls:resrep:2202
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