The impact of new infrastructure on the spatial patterns of economic activities

F. Bruinsma
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F. Bruinsma: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 12, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: This article attempts to present a systematic overview of the impact of transport infrastructure on spatial patterns of economic activities. The central element is that an improvement in the transport infrastructure leads to lower interaction costs. This has three major effects. First, an increase in the access of actors and the accessibility of locations. Second an increase in the productivity of firms and households. Third, a change in the volume and location of activities of firms and households. There also exist feed backs and intermediate factors which have an important impact on the strength and time period in which transport infrastructure affects economic development. The overview of approaches show that major steps forward can be made by linking modelling and non-modelling approaches.

Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:vua:wpaper:1995-12

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