Relationship between Transport Infrastructure and Employment

Li, Jinhui; Rim, Gwang-Nam; An, Chol-Ju

doi:10.38157/business-perspective-review.v2i1.103

Cited by 2 publications

(2 citation statements)

References 12 publications

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“…Railroad infrastructure investments have significant macroeconomic impacts on output (Berechman et al, 2006;Berger, 2019;Donaldson, 2018), employment (Berechman et al, 2006;Johansson et al, 2020;Li et al, 2020), productivity (Deichmann et al, 2004;Johansson et al, 2020;Litman, 2005), and private investment (Berechman et al, 2006;Bom and Ligthart, 2014;Pereira and Pereira, 2018a). However, Fageda and Gonzalez-Aregall (2017) find no significant impact on industrial employment.…”

Section: Railroad Infrastructurementioning

confidence: 99%

Railroad infrastructure investment and economic performance in Portugal: An industry-specific analysis

Rodrigues,

Pereira,

Pereira

2023

J. Infras. Policy. Dev.

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This study addresses the crucial question of the macroeconomic impact of investing in railroad infrastructure in Portugal. The aim is to shed light on the immediate and long-term effects of such investments on economic output, employment, and private investment, specifically focusing on interindustry variations. We employ a Vector Autoregressive (VAR) model and utilize industry-level data to estimate elasticities and marginal products on these three economic indicators. Our findings reveal a compelling positive long-term spillover effect of these investments. Specifically, every €1 million in capital spending results in a €20.84 million increase in GDP, a €17.78 million boost in private investment, and 72 new net permanent jobs. However, these gains are not immediate, as only 14.5% of the output increase and 38.8% of the investment surge occur in the first year. In contrast, job creation is nearly instantaneous, with 93% of new jobs materializing within the first year. A short-term negative impact on the trade balance is expected as new capital goods are imported. Upon industry-level analysis, the most pronounced output increases are witnessed in the real estate, construction, and wholesale and retail trade industries. The most substantial net job creation occurs in the construction, professional services, and hospitality industries. This study enriches the empirical literature by uncovering industry-specific impacts and temporal macroeconomic effects of railroad infrastructure investments. This underscores their dual advantage in bolstering long-term economic performance and counteracting job losses during downturns, thus offering valuable public policy implications. Notably, these benefits are not evenly distributed across all industries, necessitating strategic sectoral planning and awareness of employment agencies to optimize spending programs and adapt to industry shifts.

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Section: Railroad Infrastructurementioning

confidence: 99%

Railroad infrastructure investment and economic performance in Portugal: An industry-specific analysis

Rodrigues,

Pereira,

Pereira

2023

J. Infras. Policy. Dev.

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“…This means that the magnitude of provinces under study should be considered in the analysis to ensure comparability. From this, authors will use indicators such as GRP per capita, density of railways (㎞/1000 ㎢), and the density of highways (㎞/1000 ㎢) as they reflect economic development level and TI's development level (Li, et al 2020). The density of railways (㎞/1000 ㎢) is value divided the length of railways in operation by area of the given province and multiplied by 1 000, and the density of highways (㎞/1000 ㎢) -one divided the length of railways in operation by area of the given province, and multiplied by 1 000.…”

Section: Processing Of Datamentioning

confidence: 99%

Impact of Transport Infrastructure on Gross Regional Products: Evidence from Chinese Provinces under the “Belt and Road Initiative”

Rim

2020

business-perspective-review

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Purpose: This paper analyzes the impact of transport infrastructure on Gross Regional Products in Chinese provinces under the “Belt and Road Initiative”. Methods: The impact of the key elements of transport infrastructure on Gross Regional Products is analyzed based on the data related to development levels of transport infrastructure and economic development. Correlation and regression analyses were used for data analysis. Results: It is found that railways and highways, which are the key elements of transport infrastructure, have a strong correlation with Gross Regional Products, and their effects are diverse among provinces under study. Implications: The findings demonstrate the position and role of diverse infrastructural elements in enhancing the economic benefits of infrastructural investment and promoting economic growth. Thus, it is expected to facilitate decision-making related to infrastructural investment under the “Belt and Road Initiative”.

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Relationship between Transport Infrastructure and Employment

Cited by 2 publications

References 12 publications

Railroad infrastructure investment and economic performance in Portugal: An industry-specific analysis

Railroad infrastructure investment and economic performance in Portugal: An industry-specific analysis

Impact of Transport Infrastructure on Gross Regional Products: Evidence from Chinese Provinces under the “Belt and Road Initiative”

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