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Transportation Infrastructure, Economic Productivity, and Geographic Scale: Aggregate Growth versus Spatial Redistribution

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  • Boarnet, Marlon G.

Abstract

Recent cross-state studies of public infrastructure suggest that infrastructure is not economically productive. Yet it is possible that public capital influences economic activity largely by shifting that activity from one location to another. If that is the case, infrastructure can be productive at small geographic scales but not productive over large areas. This paper tests that hypothesis with a production function study of highway and road capital in California counties for the years 1969 through 1988. The results show that county output is positively associated with highway capital in the county, but negatively associated with highway capital in neighboring counties. This suggests that the productive effects of highway capital are largely a shift in economic activity from one county to another.

Suggested Citation

  • Boarnet, Marlon G., 1995. "Transportation Infrastructure, Economic Productivity, and Geographic Scale: Aggregate Growth versus Spatial Redistribution," University of California Transportation Center, Working Papers qt6sj276z4, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt6sj276z4
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    1. Douglas Holtz-Eakin & Amy Schwartz, 1995. "Spatial productivity spillovers from public infrastructure: Evidence from state highways," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(3), pages 459-468, October.
    2. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    3. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    4. Holtz-Eakin, Douglas, 1993. "State-specific estimates of state and local government capital," Regional Science and Urban Economics, Elsevier, vol. 23(2), pages 185-209, April.
    5. Garcia-Mila, Teresa & McGuire, Therese J., 1992. "The contribution of publicly provided inputs to states' economies," Regional Science and Urban Economics, Elsevier, vol. 22(2), pages 229-241, June.
    6. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
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    Cited by:

    1. Yohannes Hailu & Cheryl Brown, 2007. "Agricultural Land Development in the Northeast United States: A Spatial Simultaenous Growth Equilibrium Model," Working Papers Working Paper 2007-02, Regional Research Institute, West Virginia University.
    2. repec:rri:wpaper:200702 is not listed on IDEAS
    3. Boarnet, Marlon G., 1997. "Infrastructure Services and the Productivity of Public Capital: The Case of Streets and Highways," National Tax Journal, National Tax Association, vol. 50(1), pages 39-57, March.
    4. Boarnet, Marlon G., 1997. "Infrastructure Services and the Productivity of Public Capital: The Case of Streets and Highways," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(1), pages 39-57, March.
    5. Hailu, Yohannes G. & Brown, Cheryl, 2006. "A Spatial Simultaneous Growth Equilibrium Modeling of Agricultural Land Development in the Northeast United States," 2006 Annual meeting, July 23-26, Long Beach, CA 21082, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Yu, Nannan & de Jong, Martin & Storm, Servaas & Mi, Jianing, 2013. "Spatial spillover effects of transport infrastructure: evidence from Chinese regions," Journal of Transport Geography, Elsevier, vol. 28(C), pages 56-66.
    7. Boarnet, Marlon G., 1996. "The Direct and Indirect Economic Effects of Transportation Infrastructure," University of California Transportation Center, Working Papers qt1506r290, University of California Transportation Center.
    8. Hailu, Yohannes G. & Brown, Cheryl, 2007. "Regional Growth Impacts on Agricultural Land Development: A Spatial Model for Three States," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-15, April.
    9. Ozbay, Kaan & Ozmen-Ertekin, Dilruba & Berechman, Joseph, 2007. "Contribution of transportation investments to county output," Transport Policy, Elsevier, vol. 14(4), pages 317-329, July.
    10. Michael L. Lahr & Rodrigo Duran & Anupa Varughese, 2004. "Estimating the Impact of Highways on Average Travel Velocities and Market Size," Urban/Regional 0403009, University Library of Munich, Germany.
    11. Piyapong Jiwattanakulpaisarn & Robert B. Noland & Daniel J. Graham & John W. Polak, 2009. "Highway Infrastructure Investment And County Employment Growth: A Dynamic Panel Regression Analysis," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 263-286, May.
    12. Saba, Charles Shaaba, 2021. "Convergence and transition paths in transportation: Fresh insights from a club clustering algorithm," Transport Policy, Elsevier, vol. 112(C), pages 80-93.

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