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Roads and the geography of economic activities in Mexico

Author

Listed:
  • Blankespoor,Brian
  • Bougna Lonla,Theophile
  • Garduno Rivera,Rafael
  • Selod,Harris

Abstract

This paper estimates the impacts of road improvements on local employment and specialization in Mexico for 1986-2014, through changes in access to domestic markets and travel costs to ports and the U.S. border. Instrumenting for road placement endogeneity and addressing the recursion problem in regressions that involve access to markets, the analysis finds significant and positive causal effects of improved domestic accessibility on employment and specialization. It also finds that employment is stimulated by lower transport costs to the U.S. border, but harmed by lower transport costs to ports. Heterogeneous effects are found across sectors and regions.

Suggested Citation

  • Blankespoor,Brian & Bougna Lonla,Theophile & Garduno Rivera,Rafael & Selod,Harris, 2017. "Roads and the geography of economic activities in Mexico," Policy Research Working Paper Series 8226, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8226
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    Citations

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    Cited by:

    1. Bosker, Maarten & Park, Jane & Roberts, Mark, 2021. "Definition matters. Metropolitan areas and agglomeration economies in a large-developing country," Journal of Urban Economics, Elsevier, vol. 125(C).
    2. Alder,Simon & Croke,Kevin & Duhaut,Alice & Marty,Robert Andrew & Vaisey,Ariana Brynn, 2022. "The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data," Policy Research Working Paper Series 10000, The World Bank.
    3. Rut Atayde & Rafael Garduño & Eduardo Robles & Pluvia Zúñiga, 2021. "Market competition and firm productivity and innovation: Responses in Mexican manufacturing industries," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1185-1214, August.
    4. Moon, Yoon Sang, 2020. "Market Access Approach to Urban Growth," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 42(3), pages 1-32.
    5. Banick, Robert & Heyns, Andries M. & Regmi, Suraj, 2021. "Evaluation of rural roads construction alternatives according to seasonal service accessibility improvement using a novel multi-modal cost-time model: A study in Nepal's remote and mountainous Karnali," Journal of Transport Geography, Elsevier, vol. 93(C).
    6. Canning, David & Mabeu, Marie Christelle & Pongou, Roland, 2020. "Colonial origins and fertility: can the market overcome history?," MPRA Paper 112496, University Library of Munich, Germany.
    7. Brian Blankespoor & M Shahe Emran & Forhad Shilpi & Lu Xu, 2022. "Bridge to bigpush or backwash? Market integration, reallocation and productivity effects of Jamuna Bridge in Bangladesh [Agricultural technology choice and transport]," Journal of Economic Geography, Oxford University Press, vol. 22(4), pages 853-871.

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