The Impact of Transport Infrastructure on Productivity in Canada

Paskynel Jacques-Arvisais and Simon Lapointe

No 2022-02, CSLS Research Reports from Centre for the Study of Living Standards

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.

Keywords: transport infrastructure; productivity; Canada; highways; railways; Cobb-Douglas; production function; infrastructure investment (search for similar items in EconPapers)
Date: 2022-02
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