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Spatial economic impact of road and railroad accessibility on manufacturing output: Inter-modal relationship between road and railroad

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  • Yi, Yoojin
  • Kim, Euijune

Abstract

Despite the numerous attempts to quantify the benefits of transportation investments, little attention has been given to the variation of marginal economic impacts of the investment due to the interaction with existing transportation networks. This paper analyzes the spatial economic impacts of road and railway accessibility levels on manufacturing output, focusing on substitution and complementarity of the intra- and the inter-modal relationship. By estimating Translog production functions, we find that the improvement in railroad accessibility increases the marginal value added of local manufacturing industries associated with the change in road accessibility. The marginal value added with respect to the change in railroad accessibility increases by the level of railroad accessibility, resulting in increasing returns to scale. However, road accessibility can positively influence the marginal value added only with respect to the railroad variables, holding decreasing returns to scale. This implies that there is not a substitutive but a complementary relationship between the two transportation modes in terms of manufacturing output.

Suggested Citation

  • Yi, Yoojin & Kim, Euijune, 2018. "Spatial economic impact of road and railroad accessibility on manufacturing output: Inter-modal relationship between road and railroad," Journal of Transport Geography, Elsevier, vol. 66(C), pages 144-153.
    • Handle: RePEc:eee:jotrge:v:66:y:2018:i:c:p:144-153
    DOI: 10.1016/j.jtrangeo.2017.11.017
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    Cited by:

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    2. Makarov Andrey; & Ponomarev Yury & Radchenko Daria, 2021. "Систематизация Подходов К Оценке Территориальной Доступности Инфраструктуры," Russian Economic Development (in Russian), Gaidar Institute for Economic Policy, issue 10, pages 49-60, October.
    3. Jarosław M. Nazarczuk & Stanisław Umiński & Tomasz Brodzicki, 2020. "Determinants of the spatial distribution of exporters in regions: the role of ownership," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(3), pages 547-574, June.
    4. Makarov Andrey; & Ponomarev Yury & Radchenko Daria, 2021. "Systematization of Approaches to Assessing the Spatial Accessibility of Infrastructure [Систематизация Подходов К Оценке Территориальной Доступности Инфраструктуры]," Russian Economic Development, Gaidar Institute for Economic Policy, issue 10, pages 49-60, October.
    5. Anyu Chen & Yueran Li & Kunhui Ye & Tianyi Nie & Rui Liu, 2021. "Does Transport Infrastructure Inequality Matter for Economic Growth? Evidence from China," Land, MDPI, vol. 10(8), pages 1-21, August.
    6. Shuji Sugimori & Yoshitsugu Hayashi & Hiroyuki Takeshita & Tomohiko Isobe, 2022. "Evaluating the Regional Economic Impacts of High-Speed Rail and Interregional Disparity: A Combined Model of I/O and Spatial Interaction," Sustainability, MDPI, vol. 14(18), pages 1-13, September.
    7. Kyungtaek Kim & Junghoon Kim, 2020. "The Impact of High-Speed Railways on Unequal Accessibility Based on Ticket Prices in Korea," Sustainability, MDPI, vol. 12(16), pages 1-17, August.
    8. Euijune Kim & Min Jiang & Byula Kim, 2022. "Analyzing impacts of Vietnam’s North–South highway on creation of regional cluster," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 617-633, June.

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