Spatial infrastructure and productivity in Sweden

Abstract

Infrastructure consists of durable resources that are classified as "collective goods" generating external effects. The purpose of this paper is to analyze the role of spatial infrastructure on the industrial productivity in Sweden by utilizing two complementary approaches: A non-parametric approach - Data Envelopment Analysis and a parametric approach - Production Function. These approaches are applied to a cross-section data set of regions in Sweden. These approaches show that metropolitan regions have relatively low road efficiencies in comparison with other regions in Sweden. On the other hand the northern regions are more efficient than the southern regions.