Ports and Highways Infrastructure an Analysis of Intra-AND Interstate Spillovers

International Regional Science Review, 2008 (July), vol. 31 no. 3: pp. 257-274

Posted: 8 Aug 2016

See all articles by Jeffrey Cohen

Jeffrey Cohen

University of Connecticut - School of Business

Kristen A. Monaco

California State University, Long Beach - Department of Economics

Date Written: August 6, 2016

Abstract

U.S. ports serve a vital role in the nation's supply chain and international trade. While the areas surrounding these ports bear the external costs of port expansion (congestion, air and noise pollution), neighboring regions feel the benefits and additional costs from port activity. Given the current debate over external costs from port activity, it is important to quantify the costs and benefits of ports on industry in the home state and neighboring states. This study assesses the role that transportation infrastructure plays in production and employment in the manufacturing industry. Using state-level data from the 48 contiguous states, the authors model manufacturing production and cost, incorporating state and local investment in port and highway infrastructure as variables. The authors find lower manufacturing costs in states with increased ports infrastructure. However manufacturing firms experience higher costs if a neighboring state increases its ports infrastructure, perhaps because productive resources (firms and workers) are drawn to states that increase ports infrastructure.

Keywords: geographic spillovers, seaports, spatial autocorrelation, transportation infrastructure

JEL Classification: R4

Suggested Citation

Cohen, Jeffrey and Monaco, Kristen A., Ports and Highways Infrastructure an Analysis of Intra-AND Interstate Spillovers (August 6, 2016). International Regional Science Review, 2008 (July), vol. 31 no. 3: pp. 257-274, Available at SSRN: https://ssrn.com/abstract=2819611

Jeffrey Cohen (Contact Author)

University of Connecticut - School of Business ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

Kristen A. Monaco

California State University, Long Beach - Department of Economics ( email )

1250 Bellflower Blvd
Long Beach, CA 90840-4607
United States
(562) 985-5076 (Phone)

HOME PAGE: http://www.csulb.edu/~kmonaco

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