Does Infrastructure Investment Stimulate Building Supply? The Case of the English Regions

Michael Ball and Anupam Nanda

Regional Studies, 2014, vol. 48, issue 3, 425-438

Abstract: Ball M. and Nanda A. Does infrastructure investment stimulate building supply? The case of the English regions, Regional Studies . Policies to improve infrastructure to stimulate regional growth remain common. This paper investigates whether increases in infrastructure investment in the English regions lead to subsequent rises in new commercial and residential property, using time-series modelling. Both physical (roads and harbours) and social infrastructure (education and health) impacts are investigated. Hardly any infrastructure effects with respect to commercial property investment were found, which raises doubts about whether extra infrastructure creates employment, though some impact was related to residential building. Overall, these results raise doubts about the supposed direct effects of infrastructure policies on regional jobs and growth.

Date: 2014
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DOI: 10.1080/00343404.2013.766321

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