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Integrating Network Analysis with the Production Function Approach to Study the Spillover Effects of Transport Infrastructure

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  • Inmaculada C. �lvarez-Ayuso
  • Ana M. Conde�o-Melhorado
  • Javier Guti�rrez
  • Jose L. Zof�o

Abstract

� lvarez -A yuso I. C., C onde�o -M elhorado A. M., G uti�rrez J. and Z of�o J. L. Integrating network analysis with the production function approach to study the spillover effects of transport infrastructure, Regional Studies . The production function approach is used to analyse the role of transport infrastructure on regional gross domestic product (GDP) using new definitions and measures of road network capital stock that represent the real benefit obtained by regions when accessing markets. Improving the existing methodologies, the infrastructure stock is weighted with trade data so as to estimate the direct effects on production of a region's own infrastructure (what is termed here 'internal stock'), as well as the spillover effects that it receives from using that of neighbouring regions (imported stock). The methodology is illustrated by using Spanish data for the 1980-2007 period and these internal and imported infrastructure stocks are calculated using geographical information system (GIS) network analysis based on generalized transportations costs. With this new data set, successive regressions are performed controlling for endogeneity and the obtained results are compared with those of previous research. The validity of this methodology and the existence of significant and rather large spillover effects that even outweigh the effect of the internally endowed capital stock on aggregate production are confirmed. On average, the relative magnitude of the spillover effects to that of the internal (own) stock effect increases with the level of territorial disaggregation, i.e., it is larger for provincial data than for regional data. Unfortunately, it is also found that spillover effects are asymmetric, exhibiting negative values for poorer regions, as they do not profit from the capital stock existing in their neighbouring areas as do their richer counterparts, thereby casting doubts on the cohesion effects attributed to transport infrastructure investments.

Suggested Citation

  • Inmaculada C. �lvarez-Ayuso & Ana M. Conde�o-Melhorado & Javier Guti�rrez & Jose L. Zof�o, 2016. "Integrating Network Analysis with the Production Function Approach to Study the Spillover Effects of Transport Infrastructure," Regional Studies, Taylor & Francis Journals, vol. 50(6), pages 996-1015, June.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:6:p:996-1015
    DOI: 10.1080/00343404.2014.953472
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    References listed on IDEAS

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    1. Zofío, Jose L. & Condeço-Melhorado, Ana M. & Maroto-Sánchez, Andrés & Gutiérrez, Javier, 2014. "Generalized transport costs and index numbers: A geographical analysis of economic and infrastructure fundamentals," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 141-157.
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    1. Alberto Gude & Inmaculada Álvarez & Luis Orea, 2018. "Heterogeneous spillovers among Spanish provinces: a generalized spatial stochastic frontier model," Journal of Productivity Analysis, Springer, vol. 50(3), pages 155-173, December.
    2. Goldmann, Kathrin & Wessel, Jan, 2020. "TEN-T corridors – Stairway to heaven or highway to hell?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 240-258.
    3. Melinda Timea Fülöp & Miklós Gubán & György Kovács & Mihály Avornicului, 2021. "Economic Development Based on a Mathematical Model: An Optimal Solution Method for the Fuel Supply of International Road Transport Activity," Energies, MDPI, vol. 14(10), pages 1-22, May.
    4. Jafino, Bramka Arga, 2021. "An equity-based transport network criticality analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 204-221.
    5. Bartlomiej Rokicki & Eduardo A. Haddad & Jonathan M. Horridge & Marcin Stępniak, 2021. "Accessibility in the regional CGE framework: the effects of major transport infrastructure investments in Poland," Transportation, Springer, vol. 48(2), pages 747-772, April.

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