Agglomeration and cross-border infrastructure

Diego Puga

No 2008-06, Working Papers from Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales

Abstract: This paper deals with the effects of cross-border transport infrastructure in the presence of agglomeration economies. Cross-border infrastructure is more likely to increase than to decrease inequalities between and within regions, and has not helped regional convergence in Europe. Under-investment due to spillovers, coordination failures, and the inadequacy of networks originally designed for national markets provide a role for supranational institutions. Hub-and-spoke networks tend to increase urban primacy while cross-border transport connections tend to reduce it. Improvements in transport and communication allow firms to separate innovation, management and production, increasing efficiency and urban interdependence.

Keywords: transport; cross-border infrastructure; agglomeration; urban specialization (search for similar items in EconPapers)
JEL-codes: R12 R40 (search for similar items in EconPapers)
Date: 2008-06-24
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Published in European Investment Bank Papers 13(2), July 2008: 102-124

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Working Paper: Agglomeration and cross-border infrastructure (2008)
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