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Do transport infrastructure spillovers matter for economic growth? Evidence on road and railway transport infrastructure in Iranian provinces
Author(s) -
Dehghan Shabani Zahra,
Safaie Sima
Publication year - 2018
Publication title -
regional science policy and practice
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.342
H-Index - 8
ISSN - 1757-7802
DOI - 10.1111/rsp3.12114
Subject(s) - spillover effect , economies of agglomeration , transport infrastructure , economic geography , road transport , transportation infrastructure , business , economics , geography , transport engineering , economic growth , engineering , macroeconomics
This study analysed the spatial spillover effects of road and railway transport infrastructure on economic growth in the provinces of Iran. More specifically, it examined the direct, indirect (spatial spillover), and total effects of such infrastructure on the output growth of the provinces. To this end, maximum likelihood was used to estimate a spatial Durbin model for the provinces over the period 2001 to 2011. The results showed that main road and railway transport frameworks exert a positive and significant direct effect on the economic growth of the provinces. The main road and railway transport infrastructure in each province has a significant and positive indirect effect on the economic growth of the other provinces, indicating that improvements to individual infrastructure have spatial spillover effects on the economic growth of the other provinces. The conclusion drawn from these findings is that diffusion effects overcome agglomeration effects. Finally, total railway length has a positive spatial spillover effect on regional economic growth.