Surface Transportation and Regional Output: A Spatial Panel Approach
28 Pages Posted: 15 Aug 2012
Date Written: August 10, 2012
This paper studies regional impact of three mature surface transportation infrastructures in the northeast corridor of the US: highways, public railways and public transit. Infrastructure stock is valued in real terms from 1991 to 2009. A spatial panel approach with fixed effects is adopted to test the hypothesis of spillovers by allowing for spatial heterogeneity. The result shows that surface transportation infrastructure in general does have a significant impact on regional output, most of which is from spillover effect; highways have an overwhelming influence through both local effects and spillover effects. The impacts from public railways and transit are not significant, but transit does show a positive though small spillover effect.
Keywords: Regional Impact, Surface Transportation, Spatial Econometrics, Northeast Corridor
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