 Does small-scale port investment affect local economic activity? Evidence from small-port development in IndonesiaIndra Degree Karimah and Muhammad Yudhistira Economics of Transportation, 2020, vol. 23, issue C Abstract: This study aims to find empirical evidence whether local feeder ports as small-scale investments in public infrastructure affect the economic activity at the sub-district level. The motivation for the study originated from the fact that the public invests heavily in small-scale projects when market failures occur. However, there is a lack of empirical studies on the impact of these investments because of data unavailability and their small marginal contribution at a more aggregated level. Using Difference-in-Differences that exploit staggered implementation of small-port operations, we found that the opening of small ports increased the night light intensity, a measure that captures local economic activity, by 1.8 per cent. Although the benefits reach beyond the sub-district where the port is situated, it takes more than two years to deliver its relatively small impact, and it might be not cost-effective. Keywords: Small port; Small-scale investment; Night light intensity; Economic activity; Indonesia; Panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:23:y:2020:i:c:s2212012219301509 DOI: 10.1016/j.ecotra.2020.100180 Access Statistics for this article Economics of Transportation is currently edited by Mogens Fosgerau and Erik Verhoef More articles in Economics of Transportation from Elsevier |
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