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Highways and productivity in manufacturing firms

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  • Holl, Adelheid

Abstract

Using a geo-coded micro-level panel dataset for Spanish manufacturing firms, I estimate the effect of access to highways on firm-level productivity. To identify the causal effect of highways, I have relied on different fixed-effects specifications, instrumental variables and controls for geography, geology and history. Since highways also attract economic activity, leading to local density increases, which in turn could affect productivity through agglomeration benefits, I also present estimations that control for local employment densities. The results show that highways raise firm-level productivity directly and beyond the effect of density. Additional results show that highway benefits are unevenly distributed across sectors and space.

Suggested Citation

  • Holl, Adelheid, 2016. "Highways and productivity in manufacturing firms," Journal of Urban Economics, Elsevier, vol. 93(C), pages 131-151.
    • Handle: RePEc:eee:juecon:v:93:y:2016:i:c:p:131-151
    DOI: 10.1016/j.jue.2016.04.002
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    More about this item

    Keywords

    Highways; Transportation; Productivity; Agglomeration;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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