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Highways and productivity in manufacturing firms

Adelheid Holl

Journal of Urban Economics, 2016, vol. 93, issue C, 131-151

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.

Keywords: Highways; Transportation; Productivity; Agglomeration (search for similar items in EconPapers)
JEL-codes: R11 R12 R4 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (79)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:93:y:2016:i:c:p:131-151

DOI: 10.1016/j.jue.2016.04.002

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