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Agglomeration, productivity and the role of transport system improvements

Author

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  • Börjesson, Maria
  • Isacsson, Gunnar
  • Andersson, Matts
  • Anderstig, Christer

Abstract

We explore how transport improvements impact agglomeration defined as accessibility and thereby productivity in mid-Sweden including Stockholm 1995–2006. We apply an accessibility index derived from a multi-modal transport model. This is a more accurate measure of agglomeration than those previously used and also necessary for understanding how governments can impact agglomeration, and thereby productivity, by transport investments. We regress temporal changes in wages on temporal changes in agglomeration by applying a FE estimator. We deal with the potential endogeneity using a novel instrumental variable. Our best estimates of the agglomeration elasticity on productivity lie within the interval 0.028–0.035.

Suggested Citation

  • Börjesson, Maria & Isacsson, Gunnar & Andersson, Matts & Anderstig, Christer, 2019. "Agglomeration, productivity and the role of transport system improvements," Economics of Transportation, Elsevier, vol. 18(C), pages 27-39.
    • Handle: RePEc:eee:ecotra:v:18:y:2019:i:c:p:27-39
    DOI: 10.1016/j.ecotra.2018.12.002
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    Citations

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    Cited by:

    1. Eliasson, Jonas & Savemark, Christian & Franklin, Joel, 2020. "The impact of land use effects in infrastructure appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 262-276.
    2. Stuart Donovan & Thomas de Graaff & Henri L. F. de Groot & Carl C. Koopmans, 2024. "Unraveling urban advantages—A meta‐analysis of agglomeration economies," Journal of Economic Surveys, Wiley Blackwell, vol. 38(1), pages 168-200, February.
    3. Holmgren, Johan, 2020. "The effect of public transport quality on car ownership – A source of wider benefits?," Research in Transportation Economics, Elsevier, vol. 83(C).
    4. Dennis Gaus & Heike Link, 2020. "Economic Effects of Transportation Infrastructure Quantity and Quality: A Study of German Counties," Discussion Papers of DIW Berlin 1848, DIW Berlin, German Institute for Economic Research.
    5. Kristoffersson, Ida & Große, Christine & Olsson, Leif, 2024. "Traffic safety versus accessibility: Investigating resistance against speed limit reductions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 179(C).
    6. Ciyun Lin & Kang Wang & Dayong Wu & Bowen Gong, 2020. "Passenger Flow Prediction Based on Land Use around Metro Stations: A Case Study," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    7. Knudsen, Elias Stapput & Hjorth, Katrine & Pilegaard, Ninette, 2022. "Wages and accessibility – Evidence from Denmark," Transportation Research Part A: Policy and Practice, Elsevier, vol. 158(C), pages 44-61.
    8. Borghorst, Malte & Mulalic, Ismir & van Ommeren, Jos, 2021. "Commuting, Children and the Gender Wage Gap," Working Papers 15-2021, Copenhagen Business School, Department of Economics.
    9. Lee, Jae Kwang, 2021. "Transport infrastructure investment, accessibility change and firm productivity: Evidence from the Seoul region," Journal of Transport Geography, Elsevier, vol. 96(C).
    10. Zhou, You & Zhang, Lingzhu & JF Chiaradia, Alain, 2022. "Estimating wider economic impacts of transport infrastructure Investment: Evidence from accessibility disparity in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 220-235.

    More about this item

    Keywords

    Agglomeration; Wage earnings; Productivity; Transport investments; Wider economic impacts; Appraisal;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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