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Highways and Urban Development in Italy

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  • Marco Percoco

Abstract

Economic effects of transport infrastructure are often expressed in terms of productivityand employment differentials, whereas comparatively less attention has been devoted to impactson firm location and birth. The aim of this paper is to contribute to existing literatureby studying the construction of the highway network in Italy in a counterfactual approach. Inparticular, the role of endogeneity of exit location is explicitly considered and addressed bymeans of a new variable measuring the geography of the Roman network. Our results indicatethat an improvement in accessibility as proxied by the location of an exit in the city has a positiveimpact on the employment rate and on plant birth, with larger impacts in Center-northernand smaller cities.

Suggested Citation

  • Marco Percoco, 2013. "Highways and Urban Development in Italy," L'industria, Società editrice il Mulino, issue 1, pages 181-196.
    • Handle: RePEc:mul:j0hje1:doi:10.1430/73441:y:2013:i:1:p:181-196
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