How do road infrastructure investments affect the regional economy? Evidence from Spain

Adriana Ruíz (), Anna Matas () and Josep Raymond ()
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Adriana Ruíz: Departament d'Economia Aplicada, Universitat Autònoma de Barcelona

No XREAP2016-09, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)

Abstract: This paper analyses the relationship between road infrastructure improvements and investment in capital assets. Using aggregate data at a provincial level for 1977-2008, an equation for machinery and equipment investment is estimated applying Panel Corrected Standard Errors. The results indicate that the long-term elasticities of investment in relation to market potential, GDP and average years of schooling are 0.90, 0.75 and 0.80, respectively. Additionally, the long run impact of a road infrastructure investment policy is assessed. We find that the elasticities of investment in machinery and equipment, capital stock and GDP in relation to travel time are 1.18, 0.33 and 0.11, respectively

Keywords: Road infraestructure; Regional investment; Market potential; Travel time (search for similar items in EconPapers)
JEL-codes: R11 R4 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2016-12, Revised 2016-12
New Economics Papers: this item is included in nep-tre and nep-ure
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Citations: View citations in EconPapers (1)

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http://www.xreap.cat/RePEc/xrp/pdf/XREAP2016-09.pdf First version, 2016 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2016-09.pdf Revised version, 2016 (application/pdf)

Related works:
Working Paper: How do road infrastructure investments affect the regional economy? Evidence from Spain (2016)
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