Public Investment in Transportation Infrastructure and Economic Performance in Portugal

Pereira, Alfredo Marvão; Andraz, Jorge Miguel

doi:10.1111/j.1467-9361.2005.00271.x

Cited by 72 publications

(57 citation statements)

References 21 publications

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“…In this respect, the empirical literature can help us to explore different combinations of treated or affected groups based on patterns revealed through previously conducted studies. Consequently, proceeding from the analysis of Pereira and Andraz (2013), who revealed a pattern of negative or insignificant effects of infrastructure provision at the regional level (see also Yoshino and Abidhadjaev [2015]), and positive and significant effects at the aggregate level (Belloc and Vertova 2006;Pereira and Andraz 2005), we address the spillover effects of the railway connection on neighboring regions. Empirical evidence derived from the analysis conducted by Pereira and Andraz (2003) using a vector autoregression approach for transport and communications infrastructure and Pereira and Roca-Sagales (2007) for highways demonstrates positive spillover effects of infrastructure provision on neighboring regions.…”

Section: Assumptions Concerning the Geographical Impact Of Infrastrucmentioning

confidence: 99%

An impact evaluation of investment in infrastructure: The case of a railway connection in Uzbekistan

Yoshino

Abidhadjaev

2017

Journal of Asian Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. Umid Abidhadjaev is a research associate at ADBI.The authors would like to thank Georg Inderst, Sahoko Kaji, Khalilillo Khamidov, Marie Lall, Colin McKenzie, Masao Ogaki, Alfredo Pereira, Victor Pontines, and Michael Regan, as well as the participants of the Public Economics Seminar at Keio University, the AICILS conference at the University of Oxford, and the ICHE conference at Cornell University for their comments and meaningful contributions to earlier discussion of the results of the current research. Umid Abidhadjaev would also like to acknowledge the financial support provided by the Head Office of the Research Development and Sponsored Programs at Keio University under the Keio University Doctorate Student Grant-in-Aid Program.The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan AbstractThe objective of this paper is to examine the nature and magnitude of the effects of infrastructure provision on regional economic performance. The empirical evidence of our analysis is based on difference-in-difference estimation linking the changes in the growth rate of regional-level economic outcomes in affected regions to the newly built railway connection in the southern part of Uzbekistan, conditioned on the regions' timeinvariant individual effects, time-varying covariates, and evolving economic characteristics. To explore the differential nature of infrastructure provision, we employ an estimation examining re...

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Section: Assumptions Concerning the Geographical Impact Of Infrastrucmentioning

confidence: 99%

An impact evaluation of investment in infrastructure: The case of a railway connection in Uzbekistan

Yoshino

Abidhadjaev

2017

Journal of Asian Economics

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“…As well, enhanced transport infrastructure is the essential part for business expansion [70]. Pereira and Andraz [71] estimated for Portugal, in the long-term, that one euro in public investment rises output by 9.5 euros, namely a rate of return of 15.9%. Hu and Liu [72] explored 28 provinces in China from 1985 to 2006 via a spatial econometric model and found that each 1% increase of the transportation investment in China leads to 0.28% increase on GDP.…”

Section: Transport Infrastructure Investments and Economic Growthmentioning

confidence: 99%

“…The fixed-effects approach was selected since the study was limited to a particular group of states [34]. Onward, the nexus between transport infrastructure, associated investments, emissions of carbon dioxide, and economic growth was explored through a panel vector autoregressive model [2,8,39,44,50,55,59,62,64,65,69,71,82,83,87,93,101,105]. Firstly, the unit root of each variable was examined, then the long-run cointegration link among the variables is investigated, and afterwards the panel vector error correction model (henceforth "PVECM") was estimated to infer the Granger causal associations [44].…”

Section: Quantitative Frameworkmentioning

confidence: 99%

Empirical Evidence from EU-28 Countries on Resilient Transport Infrastructure Systems and Sustainable Economic Growth

et al. 2018

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This paper examines the nexus between the main forms of transport, related investments, specific air pollutants, and sustainable economic growth. The research is important since transport may act as a facilitator of social, economic, and environmental development. Based on data retrieved from Eurostat, Organisation for Economic Co-operation and Development (OECD), and World Bank, the output of fixed-effects regressions for EU-28 countries over 1990-2016 reveals that road, inland waterways, maritime, and air transport infrastructure positively influence gross domestic product per capita (GDPC), though a negative link occurred in the case of railway transport. As concerning investments in transport infrastructure, the empirical results exhibit a positive impact on economic growth for every type of transport, except inland waterways. Besides, emissions of CO 2 from all kind of transport, alongside other specific air pollutants, negatively influence GDPC. The fully modified and dynamic ordinary least squares panel estimation results reinforce the findings. Further, in the short-run, Granger causality based on panel vector error correction model pointed out a unidirectional causal link running from sustainable economic growth to inland waterways and maritime transport of goods, albeit a one-way causal link running from the volume of goods transported by air to GDPC. As well, the empirical results provide support one-way short-run links running from GDPC to investments in road and inland waterway transport infrastructure. In addition, a bidirectional short-run link occurred between carbon dioxide emissions from railway transport and GDPC, whereas unidirectional relations with economic growth were identified in the case of carbon dioxide emissions from road and domestic aviation. In the long-run, a bidirectional causal relation was noticed between the length of the railways lines, investments in railway transport infrastructure, and GDPC, as well as a two-way causal link between the gross weight of seaborne goods handled in ports and GDPC.

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“…Finally, and since this is not the first article that deals with infrastructure investment in Portugalindeed we could regard this paper as an update and extension of Pereira and Andraz (2005)-it is important to highlight its contributions to the literature. First, we use a new and recently completed comprehensive data set for infrastructure investment in Portugal from 1978 to 2012 [see Pereira and Pereira (2016)].…”

Section: Introductionmentioning

confidence: 99%

Are all infrastructure investments created equal? The case of Portugal

Pereira

Pereira²

2018

J Infrastruct Policy Dev

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Using a newly developed data set, we analyze the effects of infrastructure investment on economic performance in Portugal. A vector-autoregressive approach estimates the elasticity and marginal products of twelve types of infrastructure investment on private investment, employment, and output. We find that the largest long-term accumulated effects come from investments in railroads, ports, airports, health, education, and telecommunications. For these infrastructures, the output multipliers suggest that these investments pay for themselves through additional tax revenues. For investments in ports, airports and education infrastructures, the bulk of the effects are short-term demand-side effects, while for railroads, health, and telecommunications, the impact is mostly of a long-term and supply-side nature. Finally, investments in health and airports exhibit decreasing marginal returns, with railroads, ports, and telecommunications being relatively stable. In terms of the other infrastructure assets, the economic effects of investments in municipal roads, electricity and gas, and refineries are insignificant, while investments in national roads, highways, and waste and waste water have positive economic effects but too small to improve the public budget. Clearly, from a policy perspective, not all infrastructure investments in Portugal are created equal.

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Public Investment in Transportation Infrastructure and Economic Performance in Portugal

Cited by 72 publications

References 21 publications

An impact evaluation of investment in infrastructure: The case of a railway connection in Uzbekistan

An impact evaluation of investment in infrastructure: The case of a railway connection in Uzbekistan

Empirical Evidence from EU-28 Countries on Resilient Transport Infrastructure Systems and Sustainable Economic Growth

Are all infrastructure investments created equal? The case of Portugal

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