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The politico-economic determinants and productivity effects of regional transport investment in Europe

Author

Listed:
  • Kemmerling , Achim

    (Jacobs University Bremen)

  • Stephan, Andreas

    (Jonkoping International Business School)

Abstract

We study the determinants and productivity effects of regional transportation infrastructure investment in France, Germany, Italy, and Spain. We estimate productivity effects with regional production functions for each country controlling for the potential endogeneity of public infrastructure investment. In analyzing the determinants of public infrastructure investment two broad categories are considered: First, the normative principles such as efficiency, equity, and redistribution; and second, political factors such as electoral competition and electoral rents. The evidence shows that road infrastructure positively contributes to regional production. As to the determinants, efficiency and redistribution are consistently found to be the dominant norms while equity considerations appear to be less important. However, we find remarkable differences across countries regarding the political determinants. Which political factors matter for infrastructure investment is related to the different political systems of the various countries.

Suggested Citation

  • Kemmerling , Achim & Stephan, Andreas, 2008. "The politico-economic determinants and productivity effects of regional transport investment in Europe," EIB Papers 7/2008, European Investment Bank, Economics Department.
    • Handle: RePEc:ris:eibpap:2008_007
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Free access to our Article on the Comparative Political Economy of Public Investment
      by ecprpoliticaleconomy in Polidigwerkschdaeddle on 2015-02-03 07:03:26

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    Cited by:

    1. Davide Luca & Andrés Rodríguez-Pose, 2014. "Electoral politics and regional development: assessing the geographical allocation of public investment in Turkey," Working Papers. Collection A: Public economics, governance and decentralization 1402, Universidade de Vigo, GEN - Governance and Economics research Network.
    2. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    3. Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2012. "Public investment and regional growth and convergence: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 543-568, August.
    4. Luca, Davide, 2016. "Votes and Regional Economic Growth: Evidence from Turkey," World Development, Elsevier, vol. 78(C), pages 477-495.
    5. Bodenstein, Thilo and Achim Kemmerling, 2012. "Ripples in a rising tide: Why some EU regions receive more structural funds than others," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 16, January.
    6. Tei, Alessio & Ferrari, Claudio, 2018. "PPIs and transport infrastructure: Evidence from Latin America and the Caribbean," Journal of Transport Geography, Elsevier, vol. 71(C), pages 204-212.
    7. Cheteni, Priviledge, 2013. "Transport Infrastructure Investment and Transport Sector Productivity on Economic Growth in South Africa (1975-2011)," MPRA Paper 53175, University Library of Munich, Germany, revised 18 Jul 2013.
    8. Riccardo Crescenzi & Marco Di Cataldo & Andrés Rodríguez-Pose, 2016. "Government Quality And The Economic Returns Of Transport Infrastructure Investment In European Regions," Journal of Regional Science, Wiley Blackwell, vol. 56(4), pages 555-582, September.
    9. Davide Luca & Andr�s Rodr�guez-Pose, 2015. "Distributive Politics and Regional Development: Assessing the Territorial Distribution of Turkey's Public Investment," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1518-1540, November.
    10. Sandberg Hanssen, Thor-Erik & Jørgensen, Finn, 2015. "Transportation policy and road investments," Transport Policy, Elsevier, vol. 40(C), pages 49-57.
    11. Gilberto Seravalli, 2016. "Dimensioni e crescita delle citt? in Europa: l?incertezza danneggia soprattutto le citt? medie," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2016(2), pages 91-108.
    12. Bianka Dettmer & Thomas Sauer, 2019. "Implementation of European Cohesion Policy at the sub‐national level: Evidence from beneficiary data in Eastern Germany," Papers in Regional Science, Wiley Blackwell, vol. 98(1), pages 167-189, February.
    13. Alexander Eck & Joachim Ragnitz & Simone Scharfe & Christian Thater & Bernhard Wieland, 2015. "Public Investments in Infrastructure: Development, Causal Factors and Growth Effects," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 72, May.
    14. Theodore Tsekeris, 2011. "Public Expenditure Competition in the Transport Sector: Intermodal and Spatial Considerations for Greece," Environment and Planning A, , vol. 43(8), pages 1981-1998, August.
    15. Holl, Adelheid, 2011. "Factors influencing the location of new motorways: large scale motorway building in Spain," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1282-1293.
    16. Davide Luca, 2013. "Regional development goals and distributive politics in the allocation of Turkey's central investments: socioeconomic criteria, parties and legislators' personal networks," ERSA conference papers ersa13p981, European Regional Science Association.
    17. Aray, Henry & Pacheco-Delgado, Janeth, 2020. "Public investment allocation across Ecuadorian Provinces," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    18. Najkar, N. & Kohansal, M. R. & Ghorbani, M., 2018. "Estimating Spatial Effects of Transport Infrastructure on Agricultural Output of Iran," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(2).
    19. Bilotkach, Volodymyr, 2018. "Political economy of infrastructure investment: Evidence from the economic stimulus airport grants," Economics of Transportation, Elsevier, vol. 13(C), pages 27-35.
    20. Celbis, M.G. & Crombrugghe, D. de & Muysken, J., 2014. "Public investment and regional politics: The case of Turkey," MERIT Working Papers 2014-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    transport infrastructure; regional growth; political economy;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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