Estimating the Impact of Highways on Economic Activity: Evidence from Appalachian Development Corridor G

Michael Hicks

Journal of Regional Analysis and Policy, 2014, vol. 44, issue 2

Abstract: This paper analyzes the economic impact of an Appalachian Development Highway (Corridor G) on small business activity using two modeling approaches. The first model eval-uates aggregate economic growth along Corridor G and in the surrounding counties. This es-timate provides no evidence of increased economic activity in adjacent counties due to com-pletion of Corridor G. In order to account for the imprecision of an aggregate estimate, a sec-ond study of over 7,000 firms in the region was performed. This firm-level analysis indicates that proximity to the roadway improves productivity by roughly 1 percent per mile, but only in rural areas. This result suggests that a discrete public infrastructure investment may im-prove productivity in rural firms.

Keywords: Community/Rural/Urban Development; Public Economics (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jrapmc:243969

DOI: 10.22004/ag.econ.243969

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