Cookies?
Library Header Image
LSE Research Online LSE Library Services

New road infrastructure: the effects on firms

Gibbons, Stephen, Lyytikainen, Teemu, Overman, Henry G. 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.

[img]
Preview
Text - Published Version
Download (1MB) | Preview

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)
Official URL: http://www.spatialeconomics.ac.uk/
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
Sets: Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Research centres and groups > Centre for Economic Performance (CEP)
Research centres and groups > What Works Centre for Local Economic Growth (WWG)
Date Deposited: 24 Jul 2017 07:57
Last Modified: 30 Jan 2019 12:35
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/83637

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics