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Transport-Induced Agglomeration Effects: Evidence for US Metropolitan Areas

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  • Patricia C. Melo
  • Daniel J. Graham

Abstract

While the interaction between transport and agglomeration economies is widely accepted, there is insufficient research attempting at a direct empirical quantification. Using a balanced panel dataset for US metropolitan areas, we estimate a system of simultaneous equations to measure the indirect effect of urban agglomeration economies which arises through transport provision. Our findings suggest that public transit reinforces the effect of urban agglomeration, whereas road lane miles appearto weaken it. The results highlight the importance of public transit in supporting positive urban agglomeration externalities.

Suggested Citation

  • Patricia C. Melo & Daniel J. Graham, 2017. "Transport-Induced Agglomeration Effects: Evidence for US Metropolitan Areas," Working Papers REM 2017/06, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    • Handle: RePEc:ise:remwps:wp0062017
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    Cited by:

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    2. Liu, Sijing & He, Nannan & Cao, Xindan & Li, Guoqi & Jian, Ming, 2022. "Logistics cluster and its future development: A comprehensive research review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    3. Moshe Givoni, 2020. "The high‐speed bus (HSB) as an alternative to the high‐speed rail (HSR): A conceptual approach examined through a case study," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 507-518, June.
    4. Melo, Patricia C. & Sobreira, Nuno & Goulart, Pedro, 2019. "Estimating the long-run metro demand elasticities for Lisbon: A time-varying approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 360-376.
    5. Zhou, You & Zhang, Lingzhu & JF Chiaradia, Alain, 2022. "Estimating wider economic impacts of transport infrastructure Investment: Evidence from accessibility disparity in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 220-235.

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    More about this item

    Keywords

    Transport-induced agglomeration effects; productivity; system of simultaneous equations; metropolitan areas;
    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)
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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