IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/1842.html
   My bibliography  Save this paper

Motorization and the provision of roads in countries and cities

Author

Listed:
  • Ingram, Gregory K.
  • Zhi Liu

Abstract

Using panel data from 50 countries and 35 urban areas (covering a wide range of country incomes), the authors summarize trends in motorization and the provision of roads, and they examine the ratio of motor vehicles to roads in a production function framework at both national andurban levels. They find regularities very strong across countries and urban areas and over time. Among their sometimes surprising findings: (1) Economic development increases demand for transport, reliance on cars and trucks, and road provision. (2) Motorization expands at the same rate as per capita income, but the auto fleet expands more rapidly, and commercial vehicles less rapidly, than income. At early stages of motorization, commercial vehicles comprise a large share of the motor vehicle fleet. Passenger transport by automobile becomes more prominent as income grows. Both country and urban data show evidence of similar saturation levels for car and total motor vehicle ownership. (3) The presence of railways at the national level reduces commercial vehicle ownership but not car ownership, suggesting that rail is competitive for freight but not for passenger travel as incomes grow. (4) Nationally, road networks expand more slowly than incomes, but paved road networks expand at the same time as incomes. Road provision appears to be quite responsive to demand nationally. (5) For specific urban areas, per capita road length is positively associated with national income level but changes little over time, showing that history or urban endowments matter. The annexation of surrounding developed area appears to play a big role in expanding urban road length. Urban areas average roughly 15 times more road length per unit area, and seven times more vehicles per kilometer of road, than countries -and a saturation level exists for urban road length per unit of area. (6) Vehicles per kilometer of road are positively associated with income, with (proxies for) land prices, and with low gasoline prices.

Suggested Citation

  • Ingram, Gregory K. & Zhi Liu, 1997. "Motorization and the provision of roads in countries and cities," Policy Research Working Paper Series 1842, The World Bank.
    • Handle: RePEc:wbk:wbrwps:1842
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1997/11/01/000009265_3971229180749/Rendered/PDF/multi_page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Douglas Holtz-Eakin, 1992. "Public-Sector Capital and the Productivity Puzzle," NBER Working Papers 4122, National Bureau of Economic Research, Inc.
    2. Kevin T. Duffy-Deno & Randall W. Eberts, 1996. "Public Infrastructure and Regional Economic Development: A Simultaneous Equations Approach," Book chapters authored by Upjohn Institute researchers, in: Niles Hansen & Kenneth J. Button & Peter Nijkamp (ed.),Regional Policy and Regional Integration, pages 295-309, W.E. Upjohn Institute for Employment Research.
    3. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    4. Chin, Anthony & Smith, Peter, 1997. "Automobile ownership and government policy: The economics of Singapore's vehicle quota scheme," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(2), pages 129-140, March.
    5. Morrison, Catherine J & Schwartz, Amy Ellen, 1996. "State Infrastructure and Productive Performance," American Economic Review, American Economic Association, vol. 86(5), pages 1095-1111, December.
    6. Robert S. Pindyck, 1979. "The Structure of World Energy Demand," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661772, April.
    7. Bennathan, Esra & Fraser, Julie & Thompson, Louis S., 1992. "What determines demand for freight transport?," Policy Research Working Paper Series 998, The World Bank.
    8. William C. Wheaton, 1978. "Price-Induced Distortions in Urban Highway Investment," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 622-632, Autumn.
    9. William C. Wheaton, 1982. "The Long-Run Structure of Transportation and Gasoline Demand," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 439-454, Autumn.
    10. M.E. Beesley & J.F. Kain, 1964. "Urban Form, Car Ownership and Public Policy: an Appraisal of Traffic in Towns," Urban Studies, Urban Studies Journal Limited, vol. 1(2), pages 174-203, November.
    11. David Alan Aschauer, 1990. "Highway capacity and economic growth," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 14(Sep), pages 14-24.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Salon, Deborah, 2008. "Neighborhoods, Cars, and Commuting in New York City: A Discrete Choice Approach," Institute of Transportation Studies, Working Paper Series qt1673h3w3, Institute of Transportation Studies, UC Davis.
    2. Acosta Rojas, Gina E. & Calfat, Germán & Flôres Junior, Renato Galvão, 2005. "Trade and infrastructure: evidences from the Andean Community," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 580, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    3. Ingram, Gregory K. & Zhi Liu, 1998. "Vehicles, roads, and road use - alternative empirical specifications," Policy Research Working Paper Series 2036, The World Bank.
    4. Kempe Ronald Hope & Mogopodi Lekorwe, 1999. "Urbanization and the Environment in Southern Africa: Towards a Managed Framework for the Sustainability of Cities," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 42(6), pages 837-859.
    5. Kutzbach, Mark J., 2009. "Motorization in developing countries: Causes, consequences, and effectiveness of policy options," Journal of Urban Economics, Elsevier, vol. 65(2), pages 154-166, March.
    6. Salon, Deborah, 2006. "Cars and the City: An Investigation of Transportation and Residential Location Choices in New York City," University of California Transportation Center, Working Papers qt1br223vz, University of California Transportation Center.
    7. Rui Wang & Quan Yuan, 2017. "Are denser cities greener? Evidence from China, 2000–2010," Natural Resources Forum, Blackwell Publishing, vol. 41(3), pages 179-189, August.
    8. Jorge, Diaz, 2012. "Public Transportation Challenges in America: What can we Learn from Mid-Size Cities in Latin America?," 53rd Annual Transportation Research Forum, Tampa, Florida, March 15-17, 2012 207074, Transportation Research Forum.
    9. Marc Gaudry & Bernard Lapeyre & Emile Quinet, 2015. "Infrastructure maintenance, regeneration and service quality economics: A rail example," PSE Working Papers halshs-00559637, HAL.
    10. Salon, Deborah, 2009. "Neighborhoods, cars, and commuting in New York City: A discrete choice approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(2), pages 180-196, February.
    11. Shaheen, Susan & Kemmerer, Charlene, 2008. "Smart Parking Linked to Transit: Lessons Learned from the Field Test in San Francisco Bay Area of California," Institute of Transportation Studies, Working Paper Series qt2bd6m65k, Institute of Transportation Studies, UC Davis.
    12. Yang, Zhenshan & Jia, Peng & Liu, Weidong & Yin, Hongchun, 2017. "Car ownership and urban development in Chinese cities: A panel data analysis," Journal of Transport Geography, Elsevier, vol. 58(C), pages 127-134.
    13. Ingram, Gregory K. & Zhi Liu, 1999. "Determinants of motorization and road provision," Policy Research Working Paper Series 2042, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ingram, Gregory K. & Zhi Liu, 1999. "Determinants of motorization and road provision," Policy Research Working Paper Series 2042, The World Bank.
    2. David H. Good & M. Ishaq Nadiri & Robin C. Sickles, 1996. "Index Number and Factor Demand Approaches to the Estimation of Productivity," NBER Working Papers 5790, National Bureau of Economic Research, Inc.
    3. Pereira, Ricardo Antonio de Castro & Ferreira, Pedro Cavalcanti, 2006. "Impactos de bem-estar da privatização de infra-estrutura," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 633, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    4. José García-Montalvo, 1993. "Thresholds Effects, Public Capital And The Growth Of The United States," Working Papers. Serie EC 1993-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    5. Cadot, Olivier & Roller, Lars-Hendrik & Stephan, Andreas, 2006. "Contribution to productivity or pork barrel? The two faces of infrastructure investment," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1133-1153, August.
    6. Nigel Spence & Antonis Rovolis, 2002. "Duality theory and cost function analysis in a regional context: the impact of public infrastructure capital in the Greek regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(1), pages 55-78.
    7. Rodriguez-Oreggia, Eduardo & Rodriguez-Pose, Andres, 2004. "The Regional Returns of Public Investment Policies in Mexico," World Development, Elsevier, vol. 32(9), pages 1545-1562, September.
    8. Holmgren, Johan & Merkel, Axel, 2017. "Much ado about nothing? – A meta-analysis of the relationship between infrastructure and economic growth," Research in Transportation Economics, Elsevier, vol. 63(C), pages 13-26.
    9. Cassou, Steven P. & Lansing, Kevin J., 1998. "Optimal fiscal policy, public capital, and the productivity slowdown," Journal of Economic Dynamics and Control, Elsevier, vol. 22(6), pages 911-935, June.
    10. Alfredo M. Pereira & Jorge M. Andraz, 2013. "On The Economic Effects Of Public Infrastructure Investment: A Survey Of The International Evidence," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(4), pages 1-37, December.
    11. Robert Fenge & Matthias Wrede, 2007. "EU Financing and Regional Policy: Vertical Fiscal Externalities when Capital is Mobile," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(4), pages 457-476, December.
    12. 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.
    13. Mercedes Gumbau Albert & Joaquín Maudos Villarroya & Pedro Cantos, 2002. "Transport Infrastructures And Regional Growth: Evidence Of The Spanish Case," Working Papers. Serie EC 2002-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    14. Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2012. "The Macroeconomic Impact of Infrastructures: A Literature Review and Empirical Analysis on the Case of Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    15. Ferreira, Pedro Cavalcanti & Nascimento, Leandro Gonçalves do, 2005. "Welfare and growth effects of alternative fiscal rules for infrastructure investment in Brazil," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 604, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    16. Marie-Ange VEGANZONES-VAROUDAKIS, 2000. "Infrastructures, investissement et croissance : un bilan de dix années de recherches," Working Papers 200007, CERDI.
    17. Holtz-Eakin, Douglas & Schwartz, Amy Ellen, 1995. "Infrastructure in a structural model of economic growth," Regional Science and Urban Economics, Elsevier, vol. 25(2), pages 131-151, April.
    18. Chandra, Amitabh & Thompson, Eric, 2000. "Does public infrastructure affect economic activity?: Evidence from the rural interstate highway system," Regional Science and Urban Economics, Elsevier, vol. 30(4), pages 457-490, July.
    19. Satya Paul & Balbir S. Sahni & Bagala P. Biswal, 2004. "Public Infrastructure and the Productive Performance of Canadian Manufacturing Industries," Southern Economic Journal, John Wiley & Sons, vol. 70(4), pages 998-1011, April.
    20. Timilsina,Govinda R. & Hochman,Gal & Song,Ze, 2020. "Infrastructure, Economic Growth, and Poverty : A Review," Policy Research Working Paper Series 9258, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1842. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.