Gibbons, Stephen 
ORCID: 0000-0002-2871-8562, Lyytikainen, Teemu, Overman, Henry G. ORCID: 0000-0002-3525-7629 and Sanchis-Guarner, Rosa
(2017)
New road infrastructure: the effects on firms.
SERC Discussion Papers (SERCDP0214).
Spatial Economics Research Centre, London School of Economics and Political Science, London, UK.
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Abstract
This paper estimates the impact of new road infrastructure on employment and labour productivity using plant level longitudinal data for Britain. Exposure to transport improvements is measured through changes in accessibility, calculated at a detailed geographical scale from changes in minimum journey times along the road network. These changes are induced by the construction of new road link schemes. We deal with the potential endogeneity of scheme location by identifying the effects of changes in accessibility from variation across small-scale geographical areas close to the scheme. We find substantial positive effects on area level employment and number of plants. In contrast, for existing firms we find negative effects on employment coupled with increases in output per worker and wages. A plausible interpretation is that new transport infrastructure attracts transport intensive firms to an area, but with some cost to employment in existing businesses.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://www.spatialeconomics.ac.uk/SERC/publication... |
| Additional Information: | © 2017 The Authors |
| Divisions: | Geography & Environment Spatial Economics Research Centre Centre for Economic Performance What Works Centre |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HE Transportation and Communications |
| JEL classification: | D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O18 - Regional, Urban, and Rural Analyses R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade |
| Date Deposited: | 24 Jul 2017 07:57 |
| Last Modified: | 01 Nov 2024 04:56 |
| Funders: | Economic and Social Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/83637 |
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