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Mutual causality in road network growth and economic development

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  • Iacono, Michael
  • Levinson, David

Abstract

This paper investigates the relationship between the growth of roads and economic development. We test for mutual causality between the growth of road networks (which are divided functionally into local roads and highways) and changes in county-level population and employment. We employ a panel data set containing observations of road mileage by type for all Minnesota counties over the period 1988 to 2007 to fit a model describing changes in road networks, population and employment. Results indicate that causality runs in both directions between population and local road networks, while no evidence of causality in either direction is found for networks and local employment. We interpret the findings as evidence of a weakening influence of road networks (and transportation more generally) on location, and suggest methods for refining the empirical approach described herein.

Suggested Citation

  • Iacono, Michael & Levinson, David, 2016. "Mutual causality in road network growth and economic development," Transport Policy, Elsevier, vol. 45(C), pages 209-217.
    • Handle: RePEc:eee:trapol:v:45:y:2016:i:c:p:209-217
    DOI: 10.1016/j.tranpol.2015.06.005
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    9. Haibing Jiang & David Levinson, 2016. "Accessibility and the Evaluation of Investments on the Beijing Subway," Working Papers 000146, University of Minnesota: Nexus Research Group.
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    More about this item

    Keywords

    Highways; Economic development; Employment; Panel data; Minnesota; Population;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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