Differential Economic Benefits of Transportation Infrastructure at the Two Transport Nodes

11 Pages Posted: 15 Dec 2010

See all articles by Edward Chung Yim Yiu

Edward Chung Yim Yiu

University of Auckland Business School

Date Written: December 14, 2010

Abstract

Transportation infrastructure, such as a link bridge, can improve greatly in factor mobility between the two nodes, and is therefore commonly thought to have a positive economic effect at both ends. However, as the convenience of transportation would affect the choice of household and company locations, people and companies may move from the originally more convenient location to the now equally convenient location due to the completion of the infrastructure. It is theoretically and empirically confirmed that a bridge would produce a differential economic benefits (a flatter price gradient) at the two nodes, although they may both be positive. This paper shows an empirical evidence of the differential economic benefits of a bridge in Hong Kong. It sheds new light on cost-and-benefit analysis of transportation infrastructure, such as the cross-border Hong Kong-Macau-Zhuhai link bridge.

Keywords: Infrastructure, economic benefits, urban economics

JEL Classification: R49

Suggested Citation

Yiu, Edward Chung Yim, Differential Economic Benefits of Transportation Infrastructure at the Two Transport Nodes (December 14, 2010). Available at SSRN: https://ssrn.com/abstract=1725134 or http://dx.doi.org/10.2139/ssrn.1725134

Edward Chung Yim Yiu (Contact Author)

University of Auckland Business School ( email )

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New Zealand
+64 923 3913 (Phone)

HOME PAGE: http://https://unidirectory.auckland.ac.nz/people/profile/edward-yiu

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