Government Quality and the Economic Returns of Transport Infrastructure Investment in European Regions

28 Pages Posted: 7 Sep 2016

See all articles by Riccardo Crescenzi

Riccardo Crescenzi

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Marco Di Cataldo

London School of Economics & Political Science (LSE) - Department of Geography and Environment; Ca' Foscari University of Venice, Department of Economics

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment

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Date Written: September 2016

Abstract

Transport infrastructure investment is a cornerstone of growth‐promoting strategies. However, the link between infrastructure investment and economic performance remains unclear. This may be a consequence of overlooking the role of government institutions. This paper assesses the connection between regional quality of government and the returns of different types of road infrastructure in the regions of the European Union. The results unveil the influence of regional quality of government on the economic returns of transport infrastructure. In weak institutional contexts, investment in motorways — the preferred option by governments — yields significantly lower returns than the more humble secondary road. Government institutions also affect the returns of transport maintenance investment.

Suggested Citation

Crescenzi, Riccardo and Di Cataldo, Marco and Rodríguez-Pose, Andrés, Government Quality and the Economic Returns of Transport Infrastructure Investment in European Regions (September 2016). Journal of Regional Science, Vol. 56, Issue 4, pp. 555-582, 2016, Available at SSRN: https://ssrn.com/abstract=2835744 or http://dx.doi.org/10.1111/jors.12264

Riccardo Crescenzi (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Marco Di Cataldo

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Ca' Foscari University of Venice, Department of Economics ( email )

Cannaregio 873
Venice, Veneto 30121
Italy

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

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