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The Effects of Highway Construction in the Balkans: Insights from the Via Militaris

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  • Mario Holzner

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

The economic effects of the construction of modern road transport infrastructure in the Balkans, one of Europe’s economically most backward regions, is being analysed in an instrumental variables setting. In order to avoid endogeneity the construction of new highways is being instrumented by the proximity to the major ancient Roman road network that was originally constructed mainly for military purposes, such as the Via Militaris that used to run diagonally through the Balkan Peninsula. First results for Croatian municipalities in the period of analysis between the two census years of 2001 and 2011 suggest that the construction and opening of new highway sections had not only substantial positive economic effects, as measured by the change in employment, on the municipalities where the construction took place but also on the neighbouring municipalities.

Suggested Citation

  • Mario Holzner, 2014. "The Effects of Highway Construction in the Balkans: Insights from the Via Militaris," wiiw Balkan Observatory Working Papers 112, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:112
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    References listed on IDEAS

    as
    1. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
    2. Guy Michaels, 2008. "The Effect of Trade on the Demand for Skill: Evidence from the Interstate Highway System," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 683-701, November.
    3. Donaldson, Dave, 2010. "Railroads of the Raj: estimating the impact of transportation infrastructure," LSE Research Online Documents on Economics 38368, London School of Economics and Political Science, LSE Library.
    4. Dave Donaldson, 2010. "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure," NBER Working Papers 16487, National Bureau of Economic Research, Inc.
    5. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 775-805.
    6. Berechman, Joseph, 2003. "Transportation--economic aspects of Roman highway development: the case of Via Appia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(5), pages 453-478, June.
    7. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 27-28, January.
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    More about this item

    Keywords

    Economic Development; Southeast Europe; Transportation Economics;
    All these keywords.

    JEL classification:

    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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