Transport infrastructures, spillover effects and regional growth: evidence of the Spanish case

TLDR

The study analyzes how transport infrastructure modes affect regional and sectoral economic growth and examines associated spillover effects. The authors use an accounting regression on total factor productivity indices and econometric production‑function estimates to assess infrastructure impacts. Both methods yield similar elasticities for the private sector across all infrastructure types, but sector‑specific results are inconclusive, while the study confirms substantial spillover effects.

Abstract

The impact of transport infrastructures on the economic growth of both regions and sectors, distinguishing among modes of transport, is analysed. An attempt is also made to capture the spillover effects associated with transport infrastructures. Two different methodologies are used: the first adopts an accounting approach based on a regression on indices of total factor productivity; the second uses econometric estimates of the production function. Very similar elasticities are obtained with both methodologies for the private sector of the economy, both for the aggregate capital stock of transport infrastructures and for the various types of infrastructure. However, the disaggregated results for sectors of production are not conclusive. The results confirm the existence of very substantial spillover effects associated with transport infrastructures.