Received: 2022-07-10  |  Accepted: 2022-10-10  |  Published: 2022-12-30

Title

Productivity impulses from regional integration: lessons from road openings


Abstract

In recent years, assessment of wider economic impacts has become an integrated part of transportation appraisal in many developed countries. The practices have also spread to sparsely populated countries, for which the empirical evidences for such impacts remain thin. In this paper, we conduct a multi-level examination on productivity impulses of regional integration caused by road constructions in Coastal Southern Norway. We measure market access in the national road network by power and exponential distance decay, using local estimates for the distance decay parameters from Holmen (2022a) in our baseline specifications. Our endogeneity test and earlier studies suggest that productivity analyses of impulses from Norwegian road constructions do not suffer from reverse causality. Still, we operate with buffer zones of twenty traveling kilometers around each receiver of impulses from market access, where traveling times are held constant. Total factor productivity is pre-estimated, before the impacts of increased market access are assessed at firm and industry level. We find some indications of more commuting and regional industry restructuring subsequent to road openings. The most striking evidences are nevertheless that the openings neither appear to have enhanced productivity growth at firm level nor induced welfare-enhancing reallocation of factor inputs within or between local industries.


Keywords

Urban economics, rural economics, infrastructure, productivity, wider economic impacts, market access, road constructions, transportation appraisal


JEL classifications

D24 , F15 , R11 , R12


URI

http://jssidoi.org/ird/article/117


DOI


Pages

83-125


Funding

The paper was funded by the Research Council of Norway, partially through the program, the 'Industrial PhD-Program', and partially through the research project 'Impact' on wider economic impacts.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Holmen, Rasmus Bøgh
Institute of Transport Economics, Oslo, Norway https://www.toi.no
Articles by this author in: CrossRef |  Google Scholar

Journal title

Insights into Regional Development

Volume

4


Number

4


Issue date

December 2022


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1332  |  PDF downloads: 316

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