Transport Infrastructure Investment and Interindustry Spillovers: The Effects on the Cost Structure of Australian Industries

41 Pages Posted: 12 May 2014

See all articles by Amani Elnasri

Amani Elnasri

UNSW Australia Business School, School of Economics

Date Written: May 1, 2014

Abstract

This paper examines the impact of the provision of public transport infrastructure on the cost structure of the Australian economy within a context that recognises industry agglomeration externalities. The paper extends the symmetric generalised quadratic cost function by incorporating public transportation capital as an external input and adapting the spatial econometric techniques to an industrial context to allow for industry spillovers in the cost analysis. Using industry level data over the period 1990-2010, the paper finds that while public transport has a productive effect in reducing the cost of production, neglecting inter-industry spillovers has noticeably overestimates this effect.

Keywords: Transport infrastructure, Interindustry spillovers, Flexible functional forms

JEL Classification: D24, H23, H41, H54

Suggested Citation

Elnasri, Amani, Transport Infrastructure Investment and Interindustry Spillovers: The Effects on the Cost Structure of Australian Industries (May 1, 2014). UNSW Australian School of Business Research Paper No. 2014-24, Available at SSRN: https://ssrn.com/abstract=2432802 or http://dx.doi.org/10.2139/ssrn.2432802

Amani Elnasri (Contact Author)

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

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