How do road infrastructure investments affect the regional economy? Evidence from Spain

Anna Matas (), Adriana Karina Ruíz Marín () and Josep Raymond ()
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Adriana Karina Ruíz Marín: Departament d'Economia Aplicada, Universitat Autonoma de Barcelona

Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona

Abstract: This paper analyses the relationship between road infrastructure improvements and investment in capital assets. Using aggregate data at a provincial level for 1977-2008, an equation for machinery and equipment investment is estimated applying Panel Corrected Standard Errors. The results indicate that the long-term elasticities of investment in relation to market potential, GDP and average years of schooling are 0.90, 0.75 and 0.80, respectively. Additionally, the long run impact of a road infrastructure investment policy is assessed. We find that the elasticities of investment in machinery and equipment, capital stock and GDP in relation to travel time are 1.18, 0.33 and 0.11, respectively.

Keywords: infraestructure; Regional investment; Market potential; Travel time (search for similar items in EconPapers)
JEL-codes: R11 R4 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2016-06
New Economics Papers: this item is included in nep-eur, nep-geo and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: How do road infrastructure investments affect the regional economy? Evidence from Spain (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:uab:wprdea:wpdea1610

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