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Large scale infrastructure investment and economic performance – a case study of Oresund

Sandra Achten, Lars Beyer, Antje-Mareike Dietrich, Dennis Ebeling, Christian Lessmann and Arne Steinkraus ()

Applied Economics Letters, 2019, vol. 26, issue 1, 21-26

Abstract: We analyse the effect of a large scale infrastructure investment, namely the construction of the Oresund bridge, on the local and supra-regional economy. We employ the synthetic control method to construct counterfactual regions that mimic the trajectory of Malmo and Southern Sweden without treatment. Our results point to a positive effect. However, placebo tests in space and time only reveal statistical significance at a larger regional level. The results suggest that spillover effects are eminent.

Date: 2019
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