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Roads to growth: The Brazilian way

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  • Bottasso, Anna
  • Conti, Maurizio
  • Costacurta de Sa Porto, Paulo
  • Ferrari, Claudio
  • Tei, Alessio

Abstract

In this study we analyze the impact of road network extensions on economic development for a panel of industries in a set of Brazilian states observed over the period 2005–2015. We identify the effects of extending the road network using a differences-in-differences research design, where each industry exposure to road network depends on its reliance on transport services. Our main results suggest a positive causal impact of road network expansions on value added. We also find that the economic effects of road network expansions are larger in those states that are more distant from a major seaport and that positive regional spillovers occurred. An extensive set of robustness checks confirms our main findings.

Suggested Citation

  • Bottasso, Anna & Conti, Maurizio & Costacurta de Sa Porto, Paulo & Ferrari, Claudio & Tei, Alessio, 2021. "Roads to growth: The Brazilian way," Research in Transportation Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:retrec:v:90:y:2021:i:c:s0739885921000585
    DOI: 10.1016/j.retrec.2021.101086
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    Cited by:

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    More about this item

    Keywords

    Transport infrastructure; Regional development; Brazil; Differences-in-differences;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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